Co-operative Bank

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

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 .

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

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

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

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

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

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

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

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

Over 200 employees risk losing their jobs

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

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.

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

Karnataka lender doesn't have adequate capital or earning prospects, says RBI in statement.

The Reserve Bank of India has imposed a penalty on three cooperative banks, including Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh, for deficiencies in regulatory compliances

The Reserve Bank of India (RBI) on Monday said it has imposed penalties on three co-operative banks totalling Rs 5 lakh for deficiencies in regulatory compliance.

As per the directions issued first on May 10, 2019, withdrawals were capped at Rs 1,000 from any account. The directions have been periodically extended till now.

The RBI on Monday cautioned the public against co-operative societies using 'bank' in their names as well as accepting deposits from people who are not their members.

The Reserve Bank of India (RBI) on Thursday said it has imposed penalties on two co-operative banks and a non-banking financial company (NBFC), for deficiencies in certain regulatory compliance.