RBI Shuts Doors on Imperial Urban Co-operative Bank
The Reserve Bank of India has revoked the license of Imperial Urban Co-operative Bank due to insufficient capital and bleak earning prospects. The Punjab Government has been asked to wind up the bank, impacting depositors who are protected by deposit insurance for amounts up to Rs 5 lakh.
- Country:
- India
The Reserve Bank of India (RBI) has taken decisive action against Jalandhar's Imperial Urban Co-operative Bank, announcing the cancellation of its banking license due to inadequate capital and poor earning potential.
Following this decision, the Registrar of Cooperative Societies, Punjab, has been urged to facilitate the bank's dissolution by appointing a liquidator.
Under liquidation, depositors will receive their insured amount of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), with 97.79% eligible for full recompense.
As of January 31, 2025, the DICGC has disbursed Rs 5.41 crore in insured deposits.
RBI's justification highlights the bank's financial instability, inability to fulfil depositor payments, and potential public interest detriment if operations continued.
Consequently, the Imperial Urban Co-operative Bank is barred from conducting banking activities, including accepting or repaying deposits, effective immediately.
(With inputs from agencies.)
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