Reserve Bank of India: If your bank account is in any cooperative bank then you must read this news. For the past few years, banks have been facing stringent action from the Reserve Bank of India (RBI).
The effect of this was that the RBI even canceled the licenses of some banks. Not only this, the central bank has also imposed heavy fines on some big banks. Co-operative banks are suffering the most in the Reserve Bank’s action.
Reserve Bank also fined 114 times
RBI has canceled the licenses of eight cooperative banks in the financial year 2022-23 ending March 31. The Reserve Bank has also fined these banks 114 times for not following the rules. Let us tell you that banking service has expanded rapidly in rural areas through cooperative banks. But due to the irregularities coming to the fore in these banks, RBI had to take drastic steps.
Allegations of negligence in rules
Co-operative banks are facing interference from local politicians in addition to dual regulation and weak finances. The Reserve Bank has started cracking down on co-operative banks which are negligent in the rules. Permits of eight banks have been canceled in the last one year. Let us know which banks’ permits have been canceled by RBI?
Licenses of these banks were canceled
1. Mudhol Co-operative Bank 2. Milath Co-operative Bank 3. Shri Anand Co-operative Bank 4. Rupee Co-operative Bank 5. Deccan Urban Co-operative Bank 6. Lakshmi Co-operative Bank 7. Sewa Vikas Co-operative Bank 8. Babaji Date Mahila Urban Bank
The de-licensing of the above mentioned banks by RBI was done due to insufficient capital, non-adherence to the Banking Regulation Act rules. 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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