Another bank customer is in big trouble. Reserve Bank of India (RBI) has taken a big action and the license of the bank has been canceled.
Another bank customer is in big trouble. Reserve Bank of India (RBI) has taken a big action. RBI has announced to cancel the license of a co-operative bank. The central bank said on Friday that it has canceled the license of Imperial Urban Co-operative Bank located in Jalandhar, Punjab. According to RBI, the bank does not have sufficient capital and earning prospects. The Registrar of Cooperative Societies of Punjab Government has also been requested to issue an order to close the bank and appoint a liquidator for the bank.
What did RBI say?
Giving reasons for canceling the license of Imperial Urban Co-operative Bank, RBI said that the bank’s continuation is harmful to the interests of its depositors. RBI said, “Due to its current financial position, the bank will be unable to pay its depositors in full.” At the same time, the RBI also said that if the bank is allowed to continue banking business further, it will adversely affect public interest. As a result of the cancellation of the license, Imperial Urban Co-operative Bank is prohibited from doing banking business with immediate effect, which includes accepting deposits and repayment of deposits, among other things.
What will happen to the customers’ deposited money?
Every depositor will be entitled to receive deposit insurance claim amount on his deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). According to the data submitted by the bank, RBI said that 97.79 percent of the depositors are entitled to receive the full amount of their deposits from DICGC. As of January 31, 2025, DICGC has already paid Rs 5.41 crore out of the total insured deposits.
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