The Australian Prudential Regulation Authority (APRA) has granted IN1Bank Ltd an extension of its licence to operate for a limited time as a restricted authorised deposit-taking institution (Restricted ADI) under the Banking Act 1959.

APRA decided to grant this extension to IN1Bank as the extraordinary circumstances of COVID19 and APRA’s revised approach to supervising new banking entrants were beyond its control.

The regulator does not view this decision as setting a precedent for other future Restricted ADIs, and will consider any possible extensions of other Restricted ADIs’ licences on their own merits as the need arises.

IN1Bank is currently the only Restricted ADI.

In February 2021, APRA confirmed the revocation of Xinja Bank Limited’s authorised deposit-taking institution (ADI) licence under the Banking Act 1959.

A month before that, Xinja Bank completed its return of deposits process after announcing its intention in December to exit the banking industry. This marked the first time an Australian ADI had undertaken a return of deposits to its customers.