RBI canceled the license of these 8 banks, customers will not be able to do transactions
Recently, the licenses of eight co-operative banks have been canceled in the financial year 2022-23, which ended on March 31, 2023. Reserve Bank has imposed penalty on banks more than 100 times for not following the rules.
Banking service has expanded rapidly in rural areas through co-operative banks. Due to the irregularities coming to the fore in these banks, RBI has taken drastic steps.
charge of negligence
Let us tell you that apart from dual regulation and weak finance, co-operative banks are facing interference from local leaders. 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 were canceled by RBI?
Line licenses of these 8 banks were canceled
1. Mudhol Co-operative Bank
2. Milath Co-Operative Bank
3. Shree Anand Co-Operative Bank
4. Rupee Co-operative Bank
5. Deccan Urban Co-operative Bank
6. Laxmi Co-operative Bank
7. Sewa Vikas Co-operative Bank
8. Babaji Date Mahila Urban Bank
RBI licensed the above banks due to insufficient capital, non-compliance with the rules of banking regulation. Also canceled due to reasons like lack of future earning potential.
Co-operative banking sector is being monitored by RBI for the last several years. The central bank has canceled the licenses of 12 co-operative banks in the year 2021-22, 3 co-operative banks in 2020-21 and two co-operative banks in 2019-20.
