Even as the NAFCUB celebrated the gains for the UCB sector in the intervening period between last AGM to this, RBI came up with some bad news last week as well as this Monday,
Reserve Bank of India cancelled the banking license of four UCBs as well as extended the period of directions on several others. Besides, the RBI also penalized several UCBs.
The apex bank cancelled the license of Ananthasayanam Co-operative Bank Ltd., Trivandrum, Kerala, National Urban Co-operative Bank Limited, Bahraich (U.P), Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski, Karnataka and Kapol Co-operative Bank Limited, Mumbai, Maharashtra.
The penalty imposed on the banks includes, HCBL Co-operative Bank Ltd., Lucknow, Uttar Pradesh, the Citizens’ Co-operative Bank Ltd., Jammu, Shree Warana Sahakari Bank Ltd., Kolhapur, Maharashtra and the State Transport Co-operative Bank Limited, Mumbai (Maharashtra).
The RBI extended the validity of directions on Sangli Sahakari Bank Limited, Mumbai, Maharashtra. Besides, the apex bank issued a fresh direction on Colour Merchants Co-operative Bank Ltd., Ahmedabad.
A monetary penalty of Rs 11.00 lakh and Rs 6 lakh has been imposed on HCBL Co-operative Bank Ltd., Lucknow, Uttar Pradesh and the Citizens Cooperative Bank, Jammu respectively.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.00 lakh (Rupees Two Lakh only) on the State Transport Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by the RBI on ‘The Depositor Education and Awareness Fund Scheme, 2014’.
The Reserve Bank of India has extended the period of direction on the Sangli Sahakari Bank Limited, Mumbai, Maharashtra for a further period of three months from close of business on October 08, 2023, to close of business on January 08, 2024.
The apex bank has issued certain directions to Colour Merchants Co-operative Bank Ltd., Ahmedabad, whereby, as from the close of business on September 25, 2023, the bank shall not, without prior approval of the RBI in writing grant or renew any loans and advances, make any investment etc.
Cancelling the license of the bank, in a press release issued by the RBI reads,” the Reserve Bank of India (RBI) is satisfied to notify the Ananthasayanam Co-operative Bank Ltd., Trivandrum as a non-banking institution under Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949”.
Accordingly, the RBI has cancelled the licence dated December 19, 1987, granted to The Ananthasayanam Co-operative Bank Ltd., Trivandrum, Kerala to carry on banking business in India under Section 22 read with Section 56 of the Banking Regulation Act,1949 with effect from the close of business on September 21, 2023.