Cracking the whip on co-op banks: A look at RBI actions in 2022 so far

Cleaning up and improving governance of co-operative banks has been high on the Reserve Bank of India’s (RBI’s) agenda. Besides regulatory changes to the working of board and management, it cracked the whip through penalty and cancellation of banking licences. 

In August 2022, the RBI cancelled the banking licence of Rupee Cooperative Bank, which has been challenged in the Bombay High Court. The HC will take up the case for hearing on October 17. Here is a look at the RBI actions on co-op banks in 2022 so far.