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Millath Co-operative Bank licence cancelled amid higher-severity action mix

24th busiestof 47 comparable periods· top 51%

60 RBI action records published between 1 April 2022 and 30 June 2022: 41 fresh actions, 18 extensions of existing orders, 1 restriction lifted and 32 monetary-penalty actions with an amount stated, totalling ₹7.97 crore. That is 60 records against 69 over the same 91 days of Q1 2022, and ₹7.97 crore of disclosed penalty value against ₹1.74 crore.

Period complete. 91 days covered.

Action records
60

69 in Q1 2022

Disclosed penalties
₹7.97 cr

₹1.74 cr in Q1 2022

Severe actions · S4–S5
33

23 · 33.3% previously

Orders in force
26

19 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
28 Mar0000
4 Apr7304
11 Apr8404
18 Apr2020
25 Apr4022
2 May5032
9 May7115
16 May2011
23 May8026
30 May2011
6 Jun7115
13 Jun4202
20 Jun3201
27 Jun1010

What Stood Out

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

01

Banks accounted for most of the increase in disclosed penalty value

Disclosed penalties rose to ₹7.97 crore from ₹1.74 crore in Q1 2022, a ₹6.23 crore increase. Banks accounted for ₹5.20 crore across 8 actions, or 83.5% of the increase.

02

Higher-severity actions formed a larger share of the records

33 actions, or 55.0%, were severe, compared with 23 actions and 33.3% in Q1 2022. The average severity score was 3.12.

03

Penalty amounts shifted upward across the distribution

The median disclosed penalty was ₹7.5 lakh, up from ₹2.0 lakh in Q1 2022. The 90th percentile was ₹59.0 lakh and the maximum was ₹1.12 crore, compared with ₹10.0 lakh and ₹48.0 lakh.

04

Co-operative banks made up a smaller share of actions

Co-operative banks accounted for 42 actions, or 70.0%, down from 63 actions and 91.3% in Q1 2022.

05

Bulk orders covered many declared entities

The 60 records declared 88 entities. The three largest orders declared 31 entities, with the largest, dated 11 April 2022, declaring 23.

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. Monetary penalty32 · 53.3%

    Previous 46 · 66.7%

  2. Business restriction21 · 35%

    Previous 17 · 24.6%

  3. Licence cancellation6 · 10%

    Previous 6 · 8.7%

  4. Action lifted1 · 1.7%

Lifecycle

Fresh actions, extensions and withdrawals.

  1. Fresh action41 · 68.3%

    Previous 55 · 79.7%

  2. Extension18 · 30%

    Previous 14 · 20.3%

  3. Lifted / withdrawn1 · 1.7%

Entity types

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

  1. Co-operative bank42 · 70%

    Previous 63 · 91.3%

  2. Bank9 · 15%
  3. NBFC7 · 11.7%

    Previous 3 · 4.3%

  4. Payment entity2 · 3.3%

    Previous 3 · 4.3%

Why RBI acted

Overlapping themes; one action may carry several reasons.

  1. Reporting & disclosure26 · 43.3%

    Previous 31 · 44.9%

  2. Capital & exposure norms15 · 25%

    Previous 27 · 39.1%

  3. Other15 · 25%

    Previous 15 · 21.7%

  4. Customer protection12 · 20%

    Previous 13 · 18.8%

  5. Lending norms11 · 18.3%

    Previous 14 · 20.3%

  6. Governance & oversight10 · 16.7%

    Previous 18 · 26.1%

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 Bank of Maharashtra

    Largest disclosed penaltyS4 High
    25 Apr 2022₹1.12 croremonetary penalty

    Bank of Maharashtra

    Bank of Maharashtra received the period's largest disclosed penalty, ₹1.12 crore. The action cited non-compliance with RBI directions on KYC, CRILC reporting / large common exposures, and outsourcing of financial services, with deficiencies also noted during inspection and scrutiny.

    Read case briefRBI source

  3. Reserve Bank of India cancels the license of Millath Co-operative Bank Limited, Davangere, Karnataka

    Highest severity, single entityS5 Severe
    18 Jun 2022licence cancellation

    Millath Co-operative Bank Ltd., Davangere, Karnataka

    RBI cancelled the licence of Millath Co-operative Bank Ltd., Davangere, Karnataka, the highest-severity single-entity action. The cancellation cited inadequate capital and earning prospects, statutory capital/licensing non-compliance, and prejudice to depositors and public interest.

    Read case briefRBI source

What It Cost

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

Median
₹7.5 L

Previous ₹2 L

Largest
₹1.12 cr

Previous ₹48 L

Top five
₹4.12 cr

Previous ₹96.83 L

95th percentile
₹93 L

Previous ₹12 L

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₹5.2 cr₹083.5%
Co-operative bank₹2.2 cr₹1.47 cr11.7%
NBFC₹27.64 L₹12.5 L2.4%
Payment entity₹29.79 L₹14.83 L2.4%

Entity Coverage

Declared
88
Names extracted
88
Canonical links
88
First seen
22

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

Orders Still in Force

Orders
26
Entities
24
Expiring next
19
Duplicate entity rows
2

Next expiry window: 1 Jul 2022–30 Sept 2022.