Independence Co-operative Bank Ltd., Nashik, Maharashtra

RBI cancelled the licence of Independence Co-operative Bank Ltd., Nashik, Maharashtra. The bank must cease banking business, and liquidation steps were initiated.

The bank must stop all banking საქმიანity immediately, including accepting and repaying deposits. Deposit claims are limited to DICGC coverage up to ₹5 lakh per depositor, and liquidation proceedings are expected to follow.

• Section 11(1) of the Banking Regulation Act, 1949
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949
• Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949

+2 more in the case brief

RBI extended its Section 35A directions on Independence Co-operative Bank, Nashik, for two more months. The bank remains subject to restrictions on withdrawal and acceptance of deposits.

The bank must continue operating under RBI-imposed limits on deposit acceptance and withdrawals through March 10, 2022, unless modified earlier. Depositors remain constrained by the ceiling/restriction framework, and the bank’s business continues only subject to these conditions and RBI review.

• Section 35 A read with Section 56 of the Banking Regulation Act, 1949 (AACS)
• sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949 (AACS)

RBI extended its existing Section 35A directions on Independence Co-operative Bank Ltd., Nashik for another two months. The bank remains subject to restrictions on deposit withdrawal and acceptance.

The bank must continue operating under RBI-imposed limits on withdrawals and deposit acceptance through January 10, 2022, unless modified earlier. This affects depositors directly by constraining access to funds and new deposit mobilization, while the bank remains open and may continue restricted banking business.

• Section 35 A read with Section 56 of the Banking Regulation Act, 1949 (AACS)

RBI extended its existing directions on Independence Co-operative Bank Ltd., Nashik, for another three months. The bank remains subject to withdrawal and deposit-acceptance restrictions.

The bank must continue operating under RBI-imposed limits on withdrawals and deposit acceptance through November 10, 2021 unless modified earlier. Depositors remain subject to ceilings/restrictions, while the bank continues normal banking business only within the constraints of the directions.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS)

RBI placed Independence Co-operative Bank Limited, Nashik under Section 35A directions with major operating restrictions. The bank was barred from several lending, investment, liability, deposit, payment, and asset-disposal activities, and customer withdrawals were capped.

The bank must operate under RBI-imposed restrictions and cannot freely expand lending, investments, liabilities, fresh deposits, or withdrawals without approval. Depositors face withdrawal limits, though a large share were stated to be covered by DICGC insurance; the restrictions were to remain in force for six months unless modified or reviewed by RBI.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949

RBI imposed a Rs 1 lakh penalty on Independence Co-operative Bank Ltd., Nasik. The action was for violation of RBI directions on directors-related loans.

The bank faces a financial penalty of Rs 1 lakh, but the release does not mention any operational restriction or licensing action. The case signals continued compliance expectations around lending to directors and related-party exposure.

• Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)