Reserve Bank of India cancels the licence of Independence Co-operative Bank Limited, Nashik, Maharashtra

Case Brief

The Reserve Bank of India cancelled the licence of Independence Co-operative Bank Ltd., Nashik, Maharashtra, by order dated February 02, 2022. The bank was found to lack adequate capital and earning prospects and to be non-compliant with multiple provisions of the Banking Regulation Act, 1949, including Sections 11(1) and 22(3)(a) to (e) read with Section 56. RBI said the bank’s continuance was prejudicial to the interests of its depositors, that it would be unable to pay present depositors in full, and that public interest would be adversely affected if it continued operations. Following the cancellation, the bank was prohibited from conducting the business of banking, including acceptance and repayment of deposits, with immediate effect, and the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra was requested to initiate winding up and appoint a liquidator.