CURRENT AFFAIRS

Detailed explanation-1: -Press Releases. The Reserve Bank of India (RBI), vide order dated February 02, 2022, has cancelled the licence of Independence Co-operative Bank Ltd., Nashik, Maharashtra. Consequently, the bank ceases to carry on banking business, with effect from the close of business on February 03, 2022.

Detailed explanation-2: -In terms of provisions of the DICGC Act, 1961, on cancellation of registration as an insured bank, the Corporation is liable to pay every depositor, the eligible amount subject to the limit of the insurance cover, based on his deposit/s and loans in the bank as on the cut-off date.

Detailed explanation-3: -The banks whose permits have been cancelled by the RBI include Independence Cooperative Bank Limited, Mantha Urban Cooperative Bank Ltd, People’s Cooperative Bank Limited, Mudhol Cooperative Bank Limited, Millath Cooperative Bank Limited and others.

Detailed explanation-4: -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.

Detailed explanation-5: -The Reserve Bank cancelled the licence of the bank as: The bank does not have adequate capital and earning prospects. As such, 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.