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

The Reserve Bank of India cancelled the licence of Nashik-based Independence Co-operative Bank Ltd and began the process for winding it up following the erosion of the bank’s capital. The bank has stopped operation from the close of business on February 3, putting depositors of the bank in trouble.

Reason for license cancelation: The major reason for the cancellation of the license by RBI is that bank does not have adequate capital and earning prospects. This means that it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.