The licence of Jalandhar-based Imperial Urban Co-operative Bank has been suspended by the Reserve Bank of India on april 25, 2025 (Friday). The major reason cited behind the suspension is unavailability of adequate capital and earning prospects.
The Government of Punjab, along with the Registrar of Cooperative Societies have asked the bank authorities to issue an order for winding up and appoint a liquidator for the bank.
Following the shut down of the bank, each depositor can get back up to ₹5 lakh of their deposits through insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The recent data by RBI has revealed that around 97.79 percent of the depositors will be receiving the full amount of their deposits from DICGC. Around Rs 5.41 crore of the total insured deposits were paid by DICGC, as of January 31.
While outlining the reason behind the licence cancellation, the Reserve Bank of India outlined that the continuation of the bank service will be prejudicial to the interests of its depositors. RBI was quoted mentioning, “The bank with its present financial position would be unable to pay its present depositors in full.”
The higher banking authority has also mentioned that the continuity of the bank will also affect the public interest if it will be allowed to carry on banking business.
After its license was cancelled, Imperial Urban Co-operative Bank is no longer allowed to do any banking activities. This includes accepting or returning deposits, starting immediately.