Nashik : The Reserve Bank of India has finally canceled the license of the Independence Co-Operative Bank based at Sunday Peth. After this, all the business of the bank has been closed from Friday. There was a sensation after getting the news of this to the investors. The proposal to cancel the license of Independence Bank was given by the Cooperation Department to the Reserve Bank. There was also a proposal to appoint an administrator on the bank. Bank has gone bankrupt.
The Reserve Bank has said that the bank does not have sufficient investment and a fit condition to run its business. The RBI has said that the provisions of section 11 (1) and section 22 (3) (e) including section 56 of the Banking Regulation Act, 1949 are not being followed through the bank. Starting a bank is not favorable from the point of view of the investors. RBI has said that allowing the bank to start banking business will have adverse consequences on the public interest. Hence the Bank is forbidden to carry on the banking business. The Reserve Bank has clarified about the implementation of Section 56 of the Banking Regulation Act, 1949 with immediate effect.
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Earlier in February 2021, economic restrictions were imposed on the bank’s economic business for 6 months. In view of the cash position of the Bank, investors, savings account holders, business account holders were not allowed to withdraw money from any other account. During this, the RBI had talked about keeping this restriction until the financial condition of the bank improves, but now the RBI has canceled the license of the bank straight away. This bank was established 23 years ago.
board of directors as
The Board of Governors of the Bank consisted of persons belonging to various political parties. The founder chairman of the bank was Rauf Patel. Whereas, Yogesh Khaire, son of former mayor Pandit Khaire, was serving as the current president, BJP MLA Seema Hire was serving as the vice-president. Apart from this, office bearers related to parties like Congress, BJP, Shekap etc. were working among other office bearers.