- The Reserve Bank of India announced on Friday that it has revoked the license of the Imperial Urban Co-operative Bank, based in Jalandhar, due to insufficient capital and poor earning prospects.
- They’ve also asked the Registrar of Cooperative Societies in the Government of Punjab to initiate the winding-up process for the bank and appoint a liquidator.
- When the bank is liquidated, every depositor will be eligible to claim deposit insurance for their deposits, up to Rs 5 lakh, from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- According to the data provided by the bank, the RBI noted that 97.79% of depositors will be able to recover the full amount of their deposits from the DICGC.
- As of January 31, 2025, the DICGC has already disbursed Rs 5.41 crore of the total insured deposits.
The Reserve Bank of India announced on Friday that it has revoked the license of the Imperial Urban Co-operative Bank, based in Jalandhar, due to insufficient capital and poor earning prospects. They’ve also asked the Registrar of Cooperative Societies in the Government of Punjab to initiate the winding-up process for the bank and appoint a liquidator.
When the bank is liquidated, every depositor will be eligible to claim deposit insurance for their deposits, up to Rs 5 lakh, from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
According to the data provided by the bank, the RBI noted that 97.79% of depositors will be able to recover the full amount of their deposits from the DICGC.
As of January 31, 2025, the DICGC has already disbursed Rs 5.41 crore of the total insured deposits.
The RBI explained that the decision to cancel the license of Imperial Urban Co-operative Bank was made because the bank’s ongoing operations would be detrimental to the interests of its depositors.
“The bank, given its current financial situation, would not be able to fully repay its depositors,” the RBI stated, emphasizing that allowing the bank to continue its operations would negatively impact public interest.
As a result of the license cancellation, Imperial Urban Co-operative Bank is now barred from engaging in any banking activities, which includes accepting and repaying deposits, effective immediately.