National Urban Cooperative Bank's Licence Cancelled by RBI
Moneylife Digital Team 13 April 2026
Reserve Bank of India (RBI) has cancelled the certificate of registration (CoR) of Uttar Pradesh, Pratapgarh-based National Urban Cooperative Bank Ltd due to inadequate capital and the lender's poor earnings prospects. RBI has asked National Urban Cooperative Bank's Licence to stop its banking business from 10 April 2026.
 
According to RBI, the Bank has failed to comply with the requirements of the Banking Regulation Act.
 
“The continuance of National Urban Cooperative Bank is prejudicial to the interests of its depositors. With its present financial position, it would be unable to pay its present depositors in full. The public interest would be adversely affected if the Bank is allowed to carry on its banking business any further,” the central bank says.
 
Due to the cancellation of its licence, National Urban Cooperative Bank is prohibited from conducting business, including accepting fresh deposits and repaying them.
 
According to RBI, on liquidation, every depositor of National Urban Cooperative Bank is entitled to receive a deposit insurance claim amount of his or her deposits up to a monetary ceiling of ₹5 lakh from the deposit insurance and credit guarantee corporation (DICGC).
 
According to data submitted by the National Urban Cooperative Bank, 99.76% of depositors are entitled to receive the full amount of their deposits from DICGC. As of 20 January 2026, DICGC has already paid ₹14.67 crore of the total insured deposits based on the willingness received from the concerned depositors of the Uttar Pradesh-based lender.
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