RBI Revokes Imperial Urban Co-op Bank's License Due to Insufficient Liquidity. International | Dated: 29 Apr 2025 In April 2025, the Reserve Bank of India (RBI) cancelled the license of the Jalandhar (Punjab)-based Imperial Urban Co-operative Bank due to the bank’s lack of adequate capital and earning prospects. 🎯 Key Highlights: - With immediate effect, the bank has been prohibited from conducting any banking business, which includes the acceptance and repayment of deposits, as defined under Section 5(b) read with Section 56 of the Banking Regulation Act, 1949. 💡 Other Important Facts: (i) The Registrar of Cooperative Societies, Government of Punjab, has been requested to issue an order for the winding up of the bank and appoint a liquidator for the bank. (ii) On liquidation, each depositor is entitled to receive a deposit insurance claim up to Rs. 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961. (iii) According to the data submitted by the bank to the RBI, 97.79% of depositors are entitled to receive the full amount of their deposits from DICGC. As of January 31, 2025, DICGC has already paid Rs. 541 crore of the total insured deposits. 📚 Test Your Knowledge: Which institution recently revoked the license of Imperial Urban Co-operative Bank due to insufficient liquidity? Correct Answer: RBI 🚀 Quick Recap: About RBI Governor : Sanjay Malhotra Headquarter : Mumbai