Reserve Bank of India has cancelled the licence of Nashik based Independence Co-operative Bank Limited. The bank will not be allowed to carry out any operations henceforth and a liquidator will be appointed soon.
RBI has clarified that the bank does not have adequate capital and earning prospects. It said that the bank’s present financial position is such that it will not be able to pay its depositors in full and public interest would be adversely affected if the bank is allowed to carry on with its business.
RBI said that post liquidation, every depositor will be entitled to receive deposit insurance claim amount upto a monetary ceiling of five lakh rupees only. The apex bank has said that more than 99 percent of the depositors are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation.