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RBI cancelled a co-operative bank’s licence amid a sharper penalty rise

6th busiestof 47 comparable periods· top 13%

110 RBI action records published between 1 July 2022 and 30 September 2022: 94 fresh actions, 15 extensions of existing orders, 1 restriction lifted and 67 monetary-penalty actions with an amount stated, totalling ₹20.31 crore. That is 110 records against 60 over the same 92 days of Q2 2022, and ₹20.31 crore of disclosed penalty value against ₹7.97 crore.

Period complete. 92 days covered.

Action records
110

60 in Q2 2022

Disclosed penalties
₹20.31 cr

₹7.97 cr in Q2 2022

Severe actions · S4–S5
51

33 · 55% previously

Orders in force
45

21 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
27 Jun0000
4 Jul14419
11 Jul7124
18 Jul9018
25 Jul14527
1 Aug3012
8 Aug12354
15 Aug4022
22 Aug6204
29 Aug9162
5 Sept14257
12 Sept1010
19 Sept6312
26 Sept11740

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 supplied the largest share of the penalty-value increase

Disclosed penalty value rose by ₹12.34 crore from Q2 2022. Banks accounted for ₹10.32 crore in Q3 2022 and 41.5% of the increase, followed by NBFCs at ₹3.29 crore and 24.4%.

02

Severe actions formed a smaller share despite more severe cases

There were 51 severe actions, representing 46.4% of the total, compared with 33 and 55.0% in Q2 2022. Cancellations rose to 9 from 6, while supersessions remained at 0.

03

Co-operative banks took a larger share of recorded actions

Co-operative banks accounted for 89 actions, or 80.9% of the total, up from 42 actions and 70.0% in Q2 2022. Their share increased by 10.9 percentage points.

04

Many existing orders remained in force into the next quarter

There were 45 orders in force covering 42 entities, with 21 expiring between 1 October 2022 and 31 December 2022. The longest-running order had been in force for 73 months, until 30 November 2022.

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 penalty67 · 60.9%

    Previous 32 · 53.3%

  2. Business restriction32 · 29.1%

    Previous 21 · 35%

  3. Licence cancellation9 · 8.2%

    Previous 6 · 10%

  4. Action lifted1 · 0.9%

    Previous 1 · 1.7%

  5. Directive / prohibition1 · 0.9%

Lifecycle

Fresh actions, extensions and withdrawals.

  1. Fresh action94 · 85.5%

    Previous 41 · 68.3%

  2. Extension15 · 13.6%

    Previous 18 · 30%

  3. Lifted / withdrawn1 · 0.9%

    Previous 1 · 1.7%

Entity types

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

  1. Co-operative bank89 · 80.9%

    Previous 42 · 70%

  2. NBFC10 · 9.1%

    Previous 7 · 11.7%

  3. Bank8 · 7.3%

    Previous 9 · 15%

  4. Payment entity3 · 2.7%

    Previous 2 · 3.3%

Why RBI acted

Overlapping themes; one action may carry several reasons.

  1. Reporting & disclosure57 · 51.8%

    Previous 26 · 43.3%

  2. Capital & exposure norms38 · 34.5%

    Previous 15 · 25%

  3. Customer protection31 · 28.2%

    Previous 12 · 20%

  4. Lending norms28 · 25.5%

    Previous 11 · 18.3%

  5. KYC / AML24 · 21.8%

    Previous 8 · 13.3%

  6. Governance & oversight21 · 19.1%

    Previous 10 · 16.7%

Defining Actions

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

  1. RBI imposes monetary penalty on Federal Bank Limited

    Largest disclosed penaltyS4 High
    8 Jul 2022₹5.72 croremonetary penalty

    Federal Bank Ltd.

    RBI imposed the period’s largest disclosed penalty on Federal Bank Ltd. for non-compliance with RBI’s Financial Services provided by Banks Directions, 2016. The bank failed to ensure that no incentive was paid to staff engaged in insurance broking or corporate agency services by the insurance company.

    Read case briefRBI source

  3. RBI cancels the licence of The Laxmi Co-operative Bank Limited, Solapur, Maharashtra

    Highest severity, single entityS5 Severe
    22 Sept 2022licence cancellation

    The Laxmi Co-operative Bank Limited, Solapur, Maharashtra

    RBI cancelled the licence of The Laxmi Co-operative Bank Limited, Solapur, Maharashtra, because it lacked adequate capital and earning prospects and failed to meet statutory licensing requirements. RBI also said continuation of the bank was prejudicial to depositors and public interest.

    Read case briefRBI source

What It Cost

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

Median
₹5 L

Previous ₹7.5 L

Largest
₹5.72 cr

Previous ₹1.12 cr

Top five
₹11.78 cr

Previous ₹4.12 cr

95th percentile
₹1.05 cr

Previous ₹93 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₹10.32 cr₹5.2 cr41.5%
NBFC₹3.29 cr₹27.64 L24.4%
Co-operative bank₹4.96 cr₹2.2 cr22.4%
Payment entity₹1.74 cr₹29.79 L11.7%

Entity Coverage

Declared
114
Names extracted
112
Canonical links
112
First seen
67

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

Some source records declare entities but contain no extracted names.

Orders Still in Force

Orders
45
Entities
42
Expiring next
21
Duplicate entity rows
3

Next expiry window: 1 Oct 2022–31 Dec 2022.