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RBI cancels five NBFC licences over digital-lending violations

59th busiestof 140 comparable periods· top 42%

23 RBI action records published between 1 May 2022 and 31 May 2022: 13 fresh actions, 10 extensions of existing orders and 10 monetary-penalty actions with an amount stated, totalling ₹2.53 crore. That is 23 records against 21 over the same 31 days of April 2022, and ₹2.53 crore of disclosed penalty value against ₹3.95 crore.

Period complete. 31 days covered.

Action records
23

21 in April 2022

Disclosed penalties
₹2.53 cr

₹3.95 cr in April 2022

Severe actions · S4–S5
15

10 · 47.6% previously

Orders in force
28

4 expiring in the next window

When Action Arrived

Published action records across the covered window, split into RegOversight severity bands. Empty intervals remain visible.

RBI action records by publication interval and severity band
IntervalTotalS0–S1 · lifted / lowS2–S3 · moderate / highS4–S5 · major / severe
1 May0000
2 May1010
3 May0000
4 May0000
5 May0000
6 May3021
7 May0000
8 May1001
9 May2101
10 May0000
11 May2002
12 May1010
13 May2002
14 May0000
15 May0000
16 May0000
17 May1010
18 May0000
19 May0000
20 May1001
21 May0000
22 May0000
23 May1010
24 May2002
25 May2002
26 May0000
27 May3012
28 May0000
29 May0000
30 May0000
31 May1001

What Stood Out

Each finding is grounded in precomputed metrics. Open it to inspect the supporting numbers and the limits of the claim.

01

Severe actions took a larger share than in April

Severe actions accounted for 15 actions, or 65.2% of the month’s actions. In April 2022, there were 10 severe actions, representing 47.6%.

02

Co-operative banks recorded the largest disclosed penalty value

Co-operative banks accounted for ₹1.10 crore in disclosed penalties, compared with ₹46.0 lakh in April 2022. Banks recorded ₹1.04 crore, down from ₹3.31 crore in April 2022.

03

The five largest penalties made up most disclosed penalty value

The five largest penalties represented 93.1% of the disclosed penalty value. The largest was ₹59.0 lakh, while the median penalty was ₹17.4 lakh.

What RBI Did and Where It Landed

Amber bars show the current mix. The fine marker shows the comparable earlier period, so a change is visible rather than merely asserted.

Action mix

Primary recorded action category.

  1. Business restriction12 · 52.2%

    Previous 5 · 23.8%

  2. Monetary penalty10 · 43.5%

    Previous 14 · 66.7%

  3. Licence cancellation1 · 4.3%

    Previous 2 · 9.5%

Lifecycle

Fresh actions, extensions and withdrawals.

  1. Fresh action13 · 56.5%

    Previous 17 · 81%

  2. Extension10 · 43.5%

    Previous 4 · 19%

Entity types

Action records by regulated-entity class, not entities affected.

  1. Co-operative bank16 · 69.6%

    Previous 14 · 66.7%

  2. Bank3 · 13%

    Previous 4 · 19%

  3. NBFC3 · 13%

    Previous 3 · 14.3%

  4. Payment entity1 · 4.3%

Why RBI acted

Overlapping themes; one action may carry several reasons.

  1. Other10 · 43.5%

    Previous 1 · 4.8%

  2. Reporting & disclosure8 · 34.8%

    Previous 12 · 57.1%

  3. Capital & exposure norms6 · 26.1%

    Previous 6 · 28.6%

  4. Customer protection5 · 21.7%

    Previous 5 · 23.8%

  5. Governance & oversight4 · 17.4%

    Previous 4 · 19%

  6. Fair practices3 · 13%

    Previous 1 · 4.8%

Defining Actions

Up to four non-duplicative actions selected for monetary impact, breadth, severity or relief. Quiet periods may show fewer.

  1. Reserve Bank of India imposes monetary penalty on KEB Hana Bank

    Largest disclosed penaltyS4 High
    13 May 2022₹59.0 lakhmonetary penalty

    KEB Hana Bank

    RBI imposed a monetary penalty on KEB Hana Bank for non-compliance with its Interest Rate on Deposits Directions, 2016. RBI found that deposit interest rates were inconsistent, not transparent, unavailable in the CBS for supervisory review, and discriminatory across customers.

    Read case briefRBI source

  3. Directions under Section 35 A read with section 56 of the Banking Regulation Act,1949 (As Applicable to Co-operative Societies) – Harihareshwar Sahakari Bank Limited, Wai, Satara

    Highest severity, single entityS4 High
    31 May 2022business restriction

    Harihareshwar Sahakari Bank Limited, Wai, Satara

    RBI imposed Directions restricting Harihareshwar Sahakari Bank Limited from several banking activities without prior RBI approval. Depositors were also barred from withdrawing balances, subject to the stated conditions.

    Read case briefRBI source

What It Cost

10 actions had a disclosed amount. Totals and distribution shape are kept separate from action volume.

Median
₹17.4 L

Previous ₹7 L

Largest
₹59 L

Previous ₹1.12 cr

Top five
₹2.36 cr

Previous ₹3.56 cr

Percentiles
Suppressed

Too few priced actions for a stable tail estimate.

Change by entity type

Arithmetic attribution of the change in disclosed value. Contributions may exceed 100% or run in the opposite direction.

Entity typeCurrentPreviousContribution
Bank₹1.04 cr₹3.31 cr160.6%
Co-operative bank₹1.1 cr₹46 L-44.9%
Payment entity₹29.79 L₹0-21.1%
NBFC₹10 L₹17.64 L5.4%

Entity Coverage

Declared
27
Names extracted
27
Canonical links
27
First seen
7

Entity counts are breadth indicators, not action counts. One bulk order can name hundreds of companies.

Orders Still in Force

Orders
28
Entities
25
Expiring next
4
Duplicate entity rows
3

Next expiry window: 1 Jun 2022–30 Jun 2022.