Co-operative Bank

RBI cancels licence of HCBL Co-op Bank due to capital, earnings shortfall

The Reserve Bank on Monday said it has cancelled the licence of Lucknow-based HCBL Co-operative Bank as the lender does not have adequate capital and earning prospects. Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 19, the Reserve Bank of India (RBI) said in a statement. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, it said. On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, 98.69 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC, RBI said. As of January 31, 2025, DICGC has already paid Rs 21.24 crore of the total insured deposits. Giving details, the RBI said the cooperative ba

RBI cancels licence of Aurangabad-based Ajantha Urban Co-op Bank Maryadit

The Reserve Bank on Tuesday said it has cancelled the licence of Ajantha Urban Co-operative Bank Maryadit, Aurangabad, as the lender does not have adequate capital and earning prospects. Consequently, the bank ceases to carry on banking business, with effect from the close of business on Tuesday (April 22, 2025), the Reserve Bank of India (RBI) said in a statement. The Registrar of Cooperative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, the RBI said 91.55 per cent of the depositors are entitled to receiving full amount of their deposits from DICGC. As on April 3, 2025, DICGC has already paid Rs 275.22 crore of the total insured deposits. Giving re

Financials of urban co-operative banks' have been good: RBI Governor

Malhotra also said that at the system level, co-operative banks, NBFCs, and banks are all safe, secure, and robust

New India Co-op Bank case: Police get nod to attach ₹168 crore assets

In the first such instance in the city after the new criminal laws came into force, a court has allowed the police to attach 21 properties worth Rs 167.85 crore of five accused in the alleged case of embezzlement at the New India Co-operative Bank. The Economic Offences Wing (EOW) of Mumbai Police which is probing the case has started the process of attachment after receiving a magistrate court's nod on Wednesday, said an official. These properties include a Slum Rehabilitation Project worth Rs 150 crore at Charkop, being developed by builder Dharmesh Paun, one of the arrested accused. This would be the first such action under section 107 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) in Mumbai city, the EOW official said. The section allows the police to attach any property "derived or obtained, directly or indirectly, as a result of a criminal activity". In response to the EOW's application, the court allowed the attachment of 21 properties including seven flats, a shop and a

Preity Zinta got ₹1.55 cr loan remission from New India Coop Bank: Cops

The New India Co-operative Bank, which has been hit by a Rs 122 crore scam, had given a remission of Rs 1.55 crore to Bollywood actor Preity Zinta to settle her sanctioned loan of Rs 18 crore which it classified as a non-performing asset (NPA), police said on Thursday. The loan was sanctioned in 2011 and the actor settled it in April 2014, an official said. The Economic Offences Wing (EOW) of the Mumbai police is probing the New India Co-operative Bank embezzlement case. It has so far arrested eight accused in the case, including the bank's former general manager and head of accounts Hitesh Mehta, who was held on February 15. The agency has examined the data of the bank'sA loans from 2010 onwards. "During the investigation, it was found that actor Preity Zinta had taken a loan from the bank. She was sanctioned a loan of Rs 18 crore on January 7, 2011," he said. "She had mortgaged her properties to the bank, which included a flat in Mumbai and a property in Shimla, collectively ...

Co-operative banks are well regulated now: DEA Secretary Ajay Seth

"Co-operative banks in the country are generally quite robust, and the RBI takes regulatory action whenever issues arise."

RBI has cancelled licence of 7 co-operative banks since Jan: Here's why

Co-operative banking involves small financial institutions established by a group to meet the capital needs of their specific community

RBI cancels licence of Purvanchal Co-op Bank over lack of adequate capital

The Reserve Bank has cancelled the licence of Purvanchal Co-operative Bank, Ghazipur, Uttar Pradesh as it does not have adequate capital and earning prospects. The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh has also been asked to issue an order for winding up the bank and appoint a liquidator, the RBI said in a statement. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh only from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the Purvanchal Co-operative Bank, about 99.51 per cent of the depositors are entitled to receive full amount of their deposits from DICGC, the RBI said. Giving details, the RBI said the cooperative bank with its present financial position would be unable to pay its present depositors in full. "The bank does not have adequate capital and earning prospects," it said, and added public interest would be .

Cosmos Co-operative Bank halts acquisitions; targets organic growth

So far, the bank has merged 18 small co-operative banks into itself

RBI imposes Rs 60.3 lakh penalty on 5 co-operative banks for flouting norms

The Reserve Bank has imposed penalties totalling Rs 60.3 lakh on five co-operative banks for contravention of various regulatory norms. A penalty of Rs 43.30 lakh has been imposed on Rajkot Nagarik Sahakari Bank for non-compliance with RBI directions on 'ban on loans and advances to directors and their relatives, and firms/concerns in which they are interested', 'prohibition on opening of saving bank accounts in the names of certain bodies/organizations' and 'maintenance of deposit accounts'. The central bank has imposed a monetary penalty of Rs 5 lakh each on The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Sahkari Bank (Lucknow), and Zila Sahakari Bank, Garhwal (Kotdwar, Uttarakhand). Besides, a penalty of Rs 2 has been imposed on District Co-operative Bank (Dehradun). In each case, the RBI said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction of agreement entered into by the banks with

RBI imposes curbs on Shirpur Coop Bank over declining financial position

The Reserve Bank of India (RBI) on Monday imposed several restrictions on Maharashtra-based Shirpur Merchants' Co-operative Bank, including withdrawal of funds by customers, in the wake of the lender's deteriorating financial position. In a statement, the RBI said from the close of business on Monday, the bank will not grant or renew any loans and advances, make any investment, incur any liability, transfer or otherwise dispose of any of its properties or assets, without prior approval of the central bank in writing. "Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI directions," the central bank said. The RBI further said the eligible depositors would be entitled to receive deposit insurance claim amount of his/her deposits up Rs 5 lakh fr

RBI revokes the banking licence of UP-based Urban Co-operative Bank

According to data submitted by the bank, 98.32 per cent of depositors are expected to receive the full amount of their deposits from DICGC

RBI doubles bullet repayment gold loan limits for urban co-op banks

The Reserve Bank of India on Friday announced doubling the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks to Rs 4 lakh. "It has been decided to increase the existing limit for gold loans under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh in respect of Urban Cooperative Banks (UCBs) who have met the overall target and sub-targets under the Priority Sector Lending (PSL) as on March 31, 2023," RBI Governor Shaktikanta Das said. A bullet repayment scheme is one where a borrower repays interest and the principal amount at the end of a loan tenure without worrying about repayment during the loan tenure. Das, who had a meeting with top brass of UCBs recently, said the measure is in line with the RBI's earlier announcement of providing "suitable incentives" to UCBs that have met the prescribed PSL targets, wherein a lender is mandated to devote a certain part of its overall lending for the marginalised sector. Speaking after announcin

United India Co-operative Bank ceases business as RBI cancels license

The Reserve Bank of India (RBI) on Wednesday said it has cancelled the licence of Uttar Pradesh-based United India Co-operative Bank Limited, citing lack of adequate capital and earning prospects. Consequently, the bank ceases to carry on business, with effect from the closing hours on Wednesday, the RBI said in a statement. On liquidation, it said every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a ceiling of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). "As per the data submitted by the bank, 99.98 per cent of the depositors are entitled to receive full amount of their deposits from DICGC," it said. Giving reasons for cancellation of the licence, it said United India Co-operative Bank, based out of Bijnor in Uttar Pradesh, does not have adequate capital and earning prospects. "The bank with its present financial position would be unable to pay its present depositors in full," the RBI said, addin

RBI cancels licence of 2 co-operative banks due to inadequate capital

The RBI on Tuesday cancelled the licence of two cooperative banks -- Sri Sharada Mahila Co-operative Bank, Tumkur, Karnataka and Harihareshwar Sahakari Bank, Wai, Satara -- as the lenders do not have adequate capital and earning prospects. Harihareshwar Sahakari Bank ceases to carry on banking business, with effect from the close of business on July 11, 2023, the Reserve Bank of India (RBI) said in a statement. About 99.96 per cent of the depositors of Harihareshwar Sahakari Bank are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC). In the case of Sri Sharada Mahila Co-operative Bank, about 97.82 per cent of the depositors are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC). On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits of up to Rs 5 lakh from DICGC. Consequent to the cancellatio

RBI cancels licenses of two co-operative banks in Maharashtra, Karnataka

The Reserve Bank of India (RBI) on Wednesday said it has cancelled the banking licenses of two co-operative banks in Maharashtra and Karnataka. The licenses of Malkapur Urban Co-operative Bank Ltd, Buldhana and Shushruti Souharda Sahakara Bank Niyamita, Bengaluru have been cancelled. The two co-operative banks ceased to carry on banking business with effect from the close of business on Wednesday, RBI said in two separate statements. These banks did not have adequate capital and earning prospects, RBI said, adding that with their present financial position, they would be unable to pay their present depositors in full. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). In the case of Malkapur Urban Co-operative Bank, RBI said as per the data submitted by the bank, 97.60 per cent of the depositors are entitled to receive full amount of the

Maharashtra appoints liquidator to wind up Rupee Cooperative Bank

Over 200 employees risk losing their jobs

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

Here is a look at the RBI actions on co-op banks in 2022 so far.

RBI imposes fine on 8 urban co-operative banks for breach of various norms

Penalty has been imposed on Mehsana Urban Co-operative Bank for non-compliance with certain provisions of the Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016.

Regulator shouldn't view co-op banks with suspicion, says Amit Shah

Central government working to set up a national-level cooperative university