RBI Action: 15 banks fined heavily, 6 banned and one’s license cancelled

RBI has taken action against 20 banks. Some have been fined and some have been banned. One bank has been closed. Let’s find out if your bank is also included in this list?

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RBI Action: The Reserve Bank of India often takes big decisions to protect the interests of customers. In July, RBI has shown strictness against 22 banks. Heavy monetary fines have been imposed on 15 banks for not complying with KYC, loan and other banking guidelines properly. There are 6 banks which have also been banned, the central bank is currently reviewing their status. Apart from this, the license of one bank has also been canceled, RBI had also said that the bank’s continuation in operation would be harmful to the interest of the customers.

On the orders of RBI, the business of The Karwar Urban Co-operative Bank Limited has been closed from 23 July. The license of the bank has been canceled. It is also not allowed to accept deposits or pay deposits. However, every customer can claim deposit insurance up to a monetary limit of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. This bank did not have sufficient capital and earning prospects.

These banks have been banned

The Central Bank has banned 6 banks. All of them have been prohibited from closing their business for 6 months. This will not be considered as cancellation of license. The situation will be reviewed. A decision to lift the ban can also be taken later. Customers will be able to withdraw an amount of up to Rs 35,000 by taking Rs 10,000 from their account.

This list includes Innovative Co-operative Urban Bank Limited (Delhi), The Industrial Co-operative Bank Limited (Guwahati), The Sahakari Bank Limited Mumbai, Sonpeth Nagarik Sahakari Bank Limited, Lokapavani Mahila Sahakari Bank Niyamitha and Sonpeth Nagarik Sahakari Bank Limited.

1. RBI imposed fine on these banks

   District Central Co-operative Bank Limited, Durg Chhattisgarh

2. Shri Chhani Nagrik Sahakari Bank Limited, Vadodara Gujarat
3. Dr. Babasaheb Ambedkar Urban Co-operative Bank Limited, Nagpur Maharashtra
4. Mahesh Urban Co-operative Bank Limited, Parli Vajinath Maharashtra
5. Solapur Janata Sahakari Bank Limited
6. The Mandvi Nagrik Sahakari Bank Limited, Surat Gujarat
7. Shri Laxmi Vishnu Sahakari Bank Limited, Maharashtra
8. Suryoday Nagrik Sahakari Bank Limited Himatnagar, Gujarat
9. Thane District Central Co-operative Bank Limited Maharashtra
10. The Shahada People’s Co-operative Bank Limited (Maharashtra)
11. Motiram Agarwal Jalna Merchants Co-operative Bank Limited (Maharashtra)
12. Sahyadri Sahakari Bank Limited (Mumbai Maharashtra)
13. The Government Employees Co-operative Bank Limited (Dharwad, Karnataka)
14. Smriti Nagrik Sahakari Bank Limited, MP
15. The Batlagundu Co-operative Urban Bank Limited