The month of October was not good for cooperative banks especially UCBs as the RBI imposed penalties on many of them, and the apex bank also extended the validity of directions on a few.
In its analysis, the Indian Cooperative team found that during the month, the RBI imposed penalties on 35 cooperative banks worth Rs 1,11,50,000 (Rupees One Crore Eleven Lakh Fifty thousand only) for breaching the rules and regulations of the RBI.
Out of 35 cooperative banks, Nineteen are from Gujarat and Nine are from Maharashtra. Both states have the highest number of urban cooperative banks.
The penalty on these cooperative banks have been imposed on several grounds in which most common charges related to Loans & advances to Directors or their relatives, KYC Norms, Placement of Deposits with Other Banks and others.
Besides, RBI extended the directions on 11 cooperative banks and issued a fresh direction on a bank namely Mahabhairab Co-operative Urban Bank Ltd., Tezpur in October month.
It bears recall that in September 2023, the RBI imposed a penalty on fifteen cooperative banks.
