RBI: This news must be read if your bank account is with a cooperative bank. The Reserve Bank (RBI) has been taking harsh action against banks for the past few years. The RBI even cancelled several banks’ licences as a result of this. Additionally, the central bank has imposed significant fines on a few large institutions. The Reserve Bank’s action will cost cooperative banks the most money.
Cooperative banks have significantly increased the availability of financial services in rural areas
The RBI has revoked the licences of eight cooperative banks for the fiscal year 2022–23, which ends on March 31. These banks have received penalties from the Reserve Bank 114 times for breaking the rules. Let us inform you that cooperative banks have significantly increased the availability of financial services in rural areas. But because of the anomalies that were exposed in these institutions, RBI was forced to act quickly.
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Reserve Bank has begun taking action against cooperative banks that break the law
In addition to dual regulation and poor finance, cooperative banks often deal with meddling from local officials. The Reserve Bank has begun taking action against cooperative banks that break the law. In the past year, eight banks’ licences have been revoked. These are the banks’ whose licences the RBI has revoked.
These banks’ licences have been suspended
- Mudhol Co-operative Bank
- Rupee Co-operative Bank
- Milath Co-Operative Bank
- Laxmi Co-operative Bank
- Sewa Vikas Co-operative Bank
- Shree Anand Co-Operative Bank
- Deccan Urban Co-operative Bank
- Babaji Date Mahila Urban Bank
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RBI has been keeping an eye on the cooperative banking industry
Due to insufficient capital and violations of the Banking Regulation Act, the RBI revoked the licences of the aforementioned banks. Also cancelled for reasons including a lack of prospects for future income. Since a few years ago, the RBI has been keeping an eye on the cooperative banking industry. In the years 2021–2022, 2020–2020, and 2019–2020, the central bank revoked the licences of 12 cooperative banks, three cooperative banks, and two cooperative banks, respectively.
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