RBI cancels licence of Jalandhar-based Imperial City Co-op Financial institution

The Reserve Financial institution of India on Friday stated it has cancelled the licence of Jalandhar-based Imperial City Co-operative Financial institution because the lender doesn’t have enough capital and incomes prospects. The Registrar of Cooperative Societies, Authorities of Punjab has additionally been requested to concern an order for winding up of the financial institution and appoint a liquidator for the financial institution. On liquidation, each depositor could be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as Rs 5 lakh from Deposit Insurance coverage and Credit score Assure Company (DICGC).

As per the info submitted by the financial institution, RBI stated 97.79 per cent of the depositors are entitled to obtain the complete quantity of their deposits from DICGC.

As on January 31, 2025 DICGC has already paid Rs 5.41 crore of the entire insured deposits.

Giving causes for cancellation of the licence of Imperial City Co-operative Financial institution, the RBI stated the continuance of the financial institution is prejudicial to the pursuits of its depositors.

“The financial institution with its current monetary place could be unable to pay its current depositors in full,” RBI stated and added that public curiosity could be adversely affected if the financial institution is allowed to hold on banking enterprise any additional. Consequent to the cancellation of its licence, Imperial City Co-operative Financial institution has been prohibited from conducting the enterprise of ‘banking’ which incorporates, amongst different issues, acceptance of deposits and reimbursement of deposits with instant impact.