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RBI cracks down on cooperative banks: Penalties, licence cancellations & amalgamations

The Reserve Bank of India (RBI) has taken stringent actions against several cooperative banks due to various regulatory violations. The RBI imposed penalties on banks like The Urban Co-operative Bank Ltd, Pune, and Rajapalayam Co-operative Urban Bank Ltd for issues including non-compliance with deposit rates, KYC norms, and income recognition norms. Additionally, the RBI canceled the licenses of Urban Co-operative Bank Ltd, Sitapur, and Adarsh Mahila Nagari Sahakari Bank Maryadit, Aurangabad, citing reasons such as inadequate capital and earning prospects, which could jeopardize depositors' interests. These measures reflect the RBI's commitment to maintaining financial stability and protecting depositors by ensuring that cooperative banks adhere to regulatory standards.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/business/finance/rbi-cracks-down-on-cooperative-banks-penalties-licence-cancellations-and-more-19559416.htm ]