RBI Cancelled Bank License: The Reserve Bank of India (RBI) has taken severe action against some cooperative banks. The RBI has , revoked the license of these banks, and penalized them for not adhering to certain regulations.
During the the fiscal year 2022-23, the Reserve Bank of India (RBI) decided to revoke the operating permissions of a large number of India’s cooperative banks.
If you also have an account in any of these financial institutions, then you need to stay current on the latest information. The Reserve Bank of India (RBI) has taken severe action against these financial institutions. In addition to revoking the licenses of certain banks, the RBI has also levied hefty fines against these institutions. The biggest damage has been done to cooperative banks as a result of RBI’s intervention.
Recently, in the fiscal year that came to an end on March 31, 2023, the licenses of eight different cooperative banks were terminated for various reasons. More than one hundred occasions, the Reserve Bank has had to penalize financial institutions for not adhering to the regulations. Co-operative banks have been largely responsible for the fast expansion of banking services in rural regions. The Reserve Bank of India (RBI) has implemented stringent new policies in response to the irregularities that have recently come to light in these institutions.
Let me start out by explaining that in addition to dual regulation and inadequate financing, one of the biggest challenges that cooperative banks face is intervention from local authorities. The Reserve Bank has begun taking stricter action against cooperative banks that are breaking the norms in their industry. In the past year, the authorizations for eight different banks have been revoked. Can you please tell us whose banks’ licenses were revoked by the RBI?
These 8 financial institutions had their licenses revoked.
1. The Co-operative Bank of Mudhol
2. The Co-operative Bank of Milath
3. Shri Anand Co-operative Bank (in Hindi)
4. The Rupee Co-operative Bank (RCB)
Deccan Urban Co-operative Bank comes in at number 5.
Lakshmi Co-operative Bank comes in at number six.
7. Sewa Vikas Co-Operative Bank
8. Babaji Date Mahila Urban Bank
The Reserve Bank of India (RBI) granted licenses to the aforementioned banks despite their inadequate capital and noncompliance with the regulations governing banking regulation. Cancelled as well for a variety of reasons including a lack of possible future earnings. Since a number of years ago, the Reserve Bank of India (RBI) has been keeping an eye on the cooperative banking industry.
The licenses of twelve cooperative banks will be revoked by the central bank in the year 2021-22, the licenses of three cooperative banks will be revoked in the year 2020-21, and the licenses of two cooperative banks will be revoked in the year 2019-20.
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