RBI Cancels Licence of National Urban Cooperative Bank Ltd., Pratapgarh
Summary
The Reserve Bank of India has cancelled the licence of National Urban Cooperative Bank Ltd., Pratapgarh, Uttar Pradesh, under Section 22 read with Section 56 of the Banking Regulation Act, 1949. The bank ceases all banking business operations effective close of business on April 10, 2026. The RBI cited inadequate capital, non-compliance with regulatory requirements, prejudice to depositor interests, inability to pay depositors in full, and adverse public interest as grounds for cancellation.
What changed
The RBI cancelled the banking licence of National Urban Cooperative Bank Ltd., Pratapgarh citing five grounds: inadequate capital and earning prospects violating Sections 11(1) and 22(3)(d); failure to comply with Sections 22(3)(a) through (e); prejudice to depositor interests; inability to pay depositors in full; and adverse public interest. The Commissioner and Registrar of Cooperative, Uttar Pradesh has been requested to order winding up and appoint a liquidator.\n\nAffected depositors will receive deposit insurance claims from DICGC up to ₹5,00,000 (five lakh rupees), with approximately 99.76% of depositors entitled to full coverage. DICGC had already paid ₹14.67 crore to consenting depositors as of January 20, 2026. The bank is prohibited from conducting any banking business with immediate effect.
What to do next
- Depositors should file deposit insurance claims with DICGC for amounts up to ₹5,00,000
- Bank must cease all banking business operations including acceptance and repayment of deposits immediately
- Bank must cooperate with liquidator proceedings
Archived snapshot
Apr 11, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press Releases
| () | |
| Date : Apr 10, 2026 | |
| RBI cancels the licence of National Urban Cooperative Bank Ltd., Pratapgarh | |
| | The Reserve Bank of India (RBI), vide order dated April 10, 2026, has cancelled the licence of “National Urban Cooperative Bank Ltd., Pratapgarh”, under Section 22 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). Consequently, the bank ceases to carry on banking business, with effect from the close of business on April 10, 2026. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The Reserve Bank cancelled the licence of the bank as:
1. The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949.
2. The bank has failed to comply with the requirements of Sections 22(3)(a), Sections 22(3) (b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949.
3. The continuance of the bank will be prejudicial to the interests of its depositors.
4. The bank with its present financial position would be unable to pay its present depositors in full; and
5. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.
Consequent to the cancellation of its licence, “National Urban Cooperative Bank Ltd., Pratapgarh” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949, with immediate effect.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, about 99.76% of the depositors are entitled to receive full amount of their deposits from DICGC. As on January 20, 2026, DICGC has already paid ₹14.67 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961, based on the willingness received from the concerned depositors of the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/70 | | The Reserve Bank of India (RBI), vide order dated April 10, 2026, has cancelled the licence of “National Urban Cooperative Bank Ltd., Pratapgarh”, under Section 22 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). Consequently, the bank ceases to carry on banking business, with effect from the close of business on April 10, 2026. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The Reserve Bank cancelled the licence of the bank as:
- The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949.
- The bank has failed to comply with the requirements of Sections 22(3)(a), Sections 22(3) (b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949.
- The continuance of the bank will be prejudicial to the interests of its depositors.
- The bank with its present financial position would be unable to pay its present depositors in full; and
Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.
- Consequent to the cancellation of its licence, “National Urban Cooperative Bank Ltd., Pratapgarh” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949, with immediate effect.
- On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, about 99.76% of the depositors are entitled to receive full amount of their deposits from DICGC. As on January 20, 2026, DICGC has already paid ₹14.67 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961, based on the willingness received from the concerned depositors of the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/70 |
| The Reserve Bank of India (RBI), vide order dated April 10, 2026, has cancelled the licence of “National Urban Cooperative Bank Ltd., Pratapgarh”, under Section 22 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). Consequently, the bank ceases to carry on banking business, with effect from the close of business on April 10, 2026. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The Reserve Bank cancelled the licence of the bank as:
- The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949.
- The bank has failed to comply with the requirements of Sections 22(3)(a), Sections 22(3) (b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949.
- The continuance of the bank will be prejudicial to the interests of its depositors.
- The bank with its present financial position would be unable to pay its present depositors in full; and
Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.
- Consequent to the cancellation of its licence, “National Urban Cooperative Bank Ltd., Pratapgarh” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949, with immediate effect.
- On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, about 99.76% of the depositors are entitled to receive full amount of their deposits from DICGC. As on January 20, 2026, DICGC has already paid ₹14.67 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961, based on the willingness received from the concerned depositors of the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/70 | |
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