RBI Revokes Imperial Urban Cooperative Bank's License; Depositors to Receive Up to ₹5 Lakh. The bank will no longer provide any financial services.
RBI News: The Reserve Bank of India (RBI) revoked the license of the Jalandhar-based Imperial Urban Cooperative Bank on April 24, 2025. This decision was taken due to the bank's insufficient capital and lack of any prospect for continued banking operations. Subsequently, the bank's customers are concerned about the safety of their deposited funds.
Imperial Urban Cooperative Bank License Revoked
The RBI states that revoking the bank's license is in the best interest of the depositors, as the bank lacked financial stability. According to the central bank, the bank lacked the necessary capital and had no prospect of continuing banking operations. Consequently, its license has been cancelled.
What Happens to Depositors' Money?
Depositors of the Imperial Urban Cooperative Bank need not worry excessively. According to bank data, approximately 97.79% of depositors will receive their full deposits.
Despite the bank's failure, depositors will receive insured amounts up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
DICGC Provisions
DICGC has already disbursed ₹5.41 crore from the bank's insured deposits. This means that if you had deposited up to ₹5 lakh in the bank, you will receive the full amount. However, customers who deposited more than this amount may face payment issues, as DICGC insurance covers only up to ₹5 lakh.
Bank Operations Ceased; What Next?
The Imperial Urban Cooperative Bank's operations ceased completely after April 24, 2025. This means the bank will neither accept new deposits nor make payments from any accounts.
Precedence with Other Banks
The RBI has revoked the licenses of several other banks previously. Recently, the licenses of Durga Co-operative Urban Bank, Vijayawada, and other banks were also revoked for similar reasons. These banks were also found to be financially unstable, highlighting the risk to depositors' funds.
