New Delhi: The Reserve Bank of India (RBI) has canceled the license of Independence Co-operative Bank Ltd of Maharashtra. This bank will no longer be able to serve the customers. “Consequently, the bank will cease to do banking business with effect from the close of business on February 03, 2022,” RBI said in a statement. RBI gave this order on Thursday.
RBI said in its order that in view of the financial condition of the bank, the Reserve Bank had imposed some restrictions on it even last year. Due to that decision, customers could not withdraw money for 6 months. Due to the lack of improvement in the business condition of the bank, it has now been decided to cancel the license. RBI has said in its decision that the bank does not have sufficient capital and there is no prospect of earning further in the future. In such a situation, canceling the license is in the interest of the customers.
Customers will get money under the rules
While canceling the license of Independence Co-Operative Bank Limited located in Nashik city of Maharashtra, RBI has also informed the concerned department and officials about this. The bank has also asked to take steps regarding returning the deposits of the customers under the rule.
According to the order of RBI, deposits up to Rs 5 lakh will be returned to the customers of the bank. According to the bank’s data, here 99% of the account holders are entitled to get their full amount, that is, 5 lakh or less is deposited in their bank account. In such a situation, only 1 percent of the customers will be affected by the decision to cancel the bank.
Will get back up to Rs 5 lakh only
If a bank sinks, then its customers can get back up to a maximum of Rs 5 lakh. Can’t get more amount than this. As per the rules of Deposit Insurance and Credit Corporation (DICGC), every customer has been insured for deposits up to Rs 5 lakh. According to the data given by the bank to the RBI, till January 27, 2022, the bank has returned Rs 2.36 crore to the customers.
