The Reserve Bank of India (RBI) has revoked the banking licence of Imperial Urban Co-operative Bank Ltd., Jalandhar, citing inadequate capital and poor financial health.

Key Highlights:

• The RBI cancelled the bank's licence due to insufficient capital and poor earning prospects, rendering its operations prejudicial to depositor interests. 
• The Punjab Registrar of Cooperative Societies has been directed to wind up the bank and appoint a liquidator. 
• Depositors are entitled to receive insurance claims up to Rs.5 lakh under the DICGC Act; 97.79% of depositors are eligible for full repayment. 
• As of January 31, 2025, DICGC has disbursed Rs. 5.41 crore to eligible depositors. 
• The bank is prohibited from conducting banking activities, including accepting or repaying deposits, effective immediately. 
• This action underscores the RBI's commitment to maintaining financial stability and protecting the interests of depositors.