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 ample capital and incomes prospects.
The Registrar of Cooperative Societies, Authorities of Punjab has additionally been requested to challenge an order for winding up of the financial institution and appoint a liquidator for the financial institution.
On liquidation, each depositor can 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 Corp.
In keeping with the information submitted by the financial institution, RBI stated 97.79% of the depositors are entitled to obtain the total quantity of their deposits from DICGC.
As on Jan. 31, 2025 DICGC has already paid Rs 5.41 crore of the whole 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 can be unable to pay its current depositors in full,” RBI stated and added that public curiosity can 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 compensation of deposits with speedy impact.
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