RBI cancels licence of Maharashtra-based Independence Co-operative Bank : Rashtra News
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Consequent to the cancellation of its licence, Independence Co-operative Bank is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits, the banking regulator expressed.
Explaining the rationale behind the move, the RBI said continuance of the bank is prejudicial to the interests of its depositors and the bank with its present financial position would be unable to pay its present depositors in full.
Further, on liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rupees Five lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of the DICGC Act, 1961, the RBI said.
“As of January 27, 2022, DICGC has disbursed Rs 2.36 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act,1961 based on the willingness received from the concerned depositors of the bank,” read the RBI circular.
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( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a economictimes.indiatimes.com feed.)
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