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Depositors Protected: 99.76% Eligible for Full Refund Up to ₹5 Lakh Insurance Cover
Pooja Srivastava | Anytime News Network |
The Reserve Bank of India (RBI) has cancelled the licence of National Urban Cooperative Bank Ltd Pratapgarh with effect from April 10, 2026, citing serious financial and regulatory concerns. The bank has been directed to cease all banking operations immediately.
According to RBI, the bank failed to maintain adequate capital and did not comply with multiple provisions of the Banking Regulation Act 1949, including Sections 11(1) and 22(3). The regulator stated that the bank’s continuation would be detrimental to the interests of depositors and public interest.
With the cancellation of its licence, the bank is no longer permitted to accept or repay deposits or carry out any banking-related activities. The Commissioner and Registrar of Cooperative, Uttar Pradesh, has been asked to initiate the winding-up process and appoint a liquidator.
Despite the setback, depositors have significant protection under the Deposit Insurance and Credit Guarantee Corporation (DICGC). Each depositor is entitled to receive up to ₹5 lakh as insured deposit. Data indicates that around 99.76% of depositors are likely to receive their full deposits.
As of January 20, 2026, DICGC has already disbursed ₹14.67 crore to eligible depositors.
