The four banks are Sarvodaya Sahakari Bank, Dhanera Mercantile Co-operative Bank, Janata Co-operative Bank and Maninagar Co-operative Bank.
RBI says Lucknow Urban Co-operative Bank does not have adequate capital and earning prospects; cancels licence.
Urban co-operative banks with high NPAs should improve governance standards, avoid related-party transactions and focus on credit risks, RBI Governor Shaktikanta Das said.
RBI cancels banking licence of Nashik Zilla Girna Sahakari Bank as the lender does not have adequate capital and earning prospects.
Kapol Co-operative Bank has been prohibited from conducting the business of banking with immediate effect; RBI says bank does not have adequate capital and earning prospects and its continuance is prejudicial to the interests of its depositors.
RBI grants non-banking institution licence to Mahalaxmi Cooperative Bank, Dharwad, after cancelling its banking permit.
The measures include giving urban co-operative banks two years more to meet the priority sector lending targets.
RBI penalises four co-operative banks amounting to a total of Rs 44 lakh, including a fine of Rs 16 lakh on Tamil Nadu State Apex Co-operative Bank, for contravention of various norms.
RBI harmonises provisioning norms for standard assets applicable to all categories of urban cooperative banks.
Four-tiered regulatory framework is based on size of deposits; RBI also comes out with norms relating to net worth and capital adequacy of urban co-operative banks.
RBI cancels licence of Pune-based Seva Vikas Co-operative Bank due to lack of adequate capital and earning prospects.
RBI cancels licence of Laxmi Co-operative Bank; says Solapur-based lender lacks adequate capital and earning prospects.
RBI had imposed several restrictions, including on withdrawals by depositors, on these 17 banks in July in view of their deteriorating financial positions
Depositors having putting in above Rs 5 lakh in the urban co-operative bank will be hit. DICGC provides to depositors full deposit amount of up to Rs 5 lakh. As per RBI, more than 99% of the bank’s depositors are entitled to receive full amount of their deposits from DICGC.
RBI imposes penalties on eight cooperative banks, including a fine of Rs 40 lakh on Mehsana Urban Co-operative Bank, Gujarat, for non-compliance with various norms.
