The Reserve Bank of India imposed a penalty on 176 cooperative banks worth Rs 14.04cr in the financial year 2022-23 for breaching various regulatory norms. It was revealed in the Annual Report for 2022-23 released by RBI on Tuesday.
In the 2021-2022 FY, the RBI had imposed a penalty on 145 cooperative banks worth Rs 12.10 crore and it jumped to 176 UCBs in the 2022-23 FY.
The RBI fined seven Public Sector Banks and seven Private Sector Banks worth Rs 3.65 crore and Rs 12.17 crore respectively in the 2022-23 FY. Besides, the apex bank imposed a penalty on 11 NBFCs to the tune of Rs 4.39 crore.
During 2022-23, the Department undertook enforcement action against 205 REs (211 penalties) and imposed an aggregate penalty of Rs 40.39 crore for contraventions/ non-compliance with provisions of statutes and certain directions issued by the Reserve Bank from time to time.
Meanwhile, according to the handbook of details of penalties levied by RBI on cooperative banks prepared by CA Shriram K Deshpande, “In last five years between year 2018 to year 2022, the apex bank has imposed monetary penalty on 416 times and the aggregate amount of penalties was Rs 38.46 crore”.
The number of registered insured cooperative banks as on 31st March 2023 stood at 1,887 which includes 33 state cooperative banks (StCBs), 352 district central cooperative banks (DCCBs) and 1,502 urban cooperative banks (UCBs).
