In its report, RBI said, Regulatory action by the Reserve Bank of India (RBI) intensified in 2024-25, with the number of penalty impositions on co-operative banks registering a significant increase during the year.
According to RBI data, the number of instances of penalty imposed on co-operative banks, including urban co-operative banks (UCBs), rose by 22.8 per cent to 264 in 2024-25, compared with 215 cases in the previous year. The total penalty amount also increased to Rs 15.63 crore, up from Rs 12.07 crore in 2023-24.
Overall, enforcement actions across regulated entities showed mixed trends. While the total number of penalty cases across all entities increased from 281 to 353, the aggregate penalty amount declined to Rs 54.78 crore in 2024-25 from Rs 86.11 crore a year earlier.
Public sector banks recorded a decline in both the number and value of penalties, with cases falling from 16 to 8 and the total penalty amount reducing from Rs 23.68 crore to Rs 11.11 crore. Private sector banks, however, saw an increase in instances to 15, though the total penalty amount declined to Rs 14.80 crore.
Penalties on NBFCs and asset reconstruction companies increased in number to 37, but the total amount imposed declined to Rs 7.29 crore. Housing finance companies (HFCs) witnessed a sharp rise in cases to 13, while penalties on foreign banks doubled in number, though the amount imposed fell.
