The Reserve Bank of India (RBI) has cancelled the banking licence of National Urban Cooperative Bank, Pratapgarh, with effect from April 10, 2026, citing weak financials and regulatory non-compliance.
Following the cancellation, the bank has ceased all banking operations, and the Uttar Pradesh Registrar of Cooperative Societies has been asked to initiate liquidation proceedings and appoint a liquidator.
The RBI stated that the bank lacked adequate capital and earning prospects, failed to meet multiple regulatory requirements, and its continued operations could adversely impact depositor interests and public confidence.
Upon liquidation, depositors will be eligible to receive insurance cover of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As per available data, around 99.76% of depositors are expected to receive their full insured amount. DICGC has already disbursed Rs 14.67 crore towards insured deposits.