RBI Cancels Licence of Independence Co-operative Bank Ltd. 

Following the eroding of the bank’s capital, the Reserve Bank of India revoked Independence Co-operative Bank Ltd’s licence and began the process of winding it up.

The bank has ceased operations as of the close of business on February 3, placing the bank’s depositors in jeopardy.

After the bank is liquidated, they will receive up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The Reserve Bank of India has instructed Maharashtra’s Commissioner for Cooperation and Registrar of Cooperative Societies to issue an order winding up the bank and appoint a liquidator.

According to the bank’s records, over 99 percent of depositors are eligible to collect the full value of their deposits from DICGC, according to RBI. DICGC had disbursed Rs 2.36 crore of the total insured deposits as of January 27, 2022.

The bank’s continued existence, according to RBI, is detrimental to the interests of its depositors because it lacks enough capital and earning potential. “With its current financial situation, the bank would be unable to pay all of its current depositors in full,” the central bank stated.

To Read Official Press Release Download PDF Given Below: