Australian Prudential Regulation Authority approves final transfer of in1Bank deposits to Commonwealth Bank of Australia as in1Bank prepares to surrender its ADI licence

The Australian Prudential Regulation Authority (APRA) reported the successful completion of in1Bank Limited’s process to return deposits to customers, after the remaining deposits were transferred to Commonwealth Bank of Australia (CBA). The move follows in1Bank’s decision to cease operating as a bank and relinquish its authorised deposit-taking institution (ADI) licence. in1Bank began returning deposits in January and, at the time it announced its intention to hand back its ADI licence, had more than 1,150 customer deposit accounts totalling approximately AUD 15.9 million. APRA monitored the process, under which most deposits were transferred to other banking institutions, and formally approved the final transfer to CBA using its powers under the Financial Sector (Transfer and Restructure) Act 1999 and the Banking Act 1959. The remaining 14 accounts, totalling approximately AUD 14,500, were transferred to CBA, which created new accounts for each depositor; affected customers were contacted by both banks, and can leave funds at CBA or move them once account verification is completed. in1Bank is expected to formally relinquish its licence to APRA in the next few weeks.