Reserve Bank of India: In the financial year ended March 31, the licenses of several co-operative banks have been canceled by the Reserve Bank of India.
If you also have an account in these banks, then you should stay updated with this news. These banks have faced stringent action from the Reserve Bank of India (RBI). Apart from canceling the license of banks, RBI has also imposed heavy penalty on some banks. Co-operative banks have suffered the most in the RBI action.
RBI fined them 114 times
Recently, the licenses of eight cooperative banks have been canceled in the financial year 2022-23 ending March 31, 2023. The Reserve Bank has fined these banks more than 100 times for not following the rules. Banking service has expanded rapidly in rural areas through co-operative banks. RBI has taken strict steps due to the irregularities coming to the fore in these banks.
Allegations of negligence
Apart from dual regulation and weak finance, cooperative banks are facing interference from local leaders. The Reserve Bank of India has started cracking down on co-operative banks flouting rules. Permits of eight banks have been canceled in the last one year.
Let us know which banks’ permits have been canceled by the RBI.
Licenses of these 8 banks in India are canceled by the RBI
- Mudhol Co-operative Bank
- Milath Co-operative Bank
- Shri Anand Co-operative Bank
- Rupee Co-operative Bank
- Deccan Urban Co-operative Bank
- Lakshmi Co-operative Bank
- Sewa Vikas Co-operative Bank
- Babaji Date Mahila Urban Bank
RBI canceled the license of the above banks due to insufficient capital, non-compliance with the rules of banking regulation. Also canceled for reasons like lack of future earning potential. Cooperative banking sector is being monitored by RBI since last many years. The central bank has canceled the licenses of 12 cooperative banks in the year 2021-22, 3 cooperative banks in 2020-21 and two cooperative banks in 2019-20.
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