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RBI cancelled co-operative bank licences as penalty value rose

19th busiestof 140 comparable periods· top 14%

38 RBI action records published between 1 January 2024 and 31 January 2024: 27 fresh actions, 11 extensions of existing orders and 24 monetary-penalty actions with an amount stated, totalling ₹3.74 crore. That is 38 records against 53 over the same 31 days of December 2023, and ₹3.74 crore of disclosed penalty value against ₹57.1 lakh.

Period complete. 31 days covered.

Action records
38

53 in December 2023

Disclosed penalties
₹3.74 cr

₹57.08 L in December 2023

Severe actions · S4–S5
16

22 · 41.5% previously

Orders in force
40

11 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 Jan0000
2 Jan1001
3 Jan0000
4 Jan5320
5 Jan0000
6 Jan0000
7 Jan0000
8 Jan6231
9 Jan0000
10 Jan0000
11 Jan0000
12 Jan6024
13 Jan0000
14 Jan0000
15 Jan0000
16 Jan1001
17 Jan0000
18 Jan5140
19 Jan2002
20 Jan0000
21 Jan0000
22 Jan1001
23 Jan0000
24 Jan0000
25 Jan5005
26 Jan0000
27 Jan0000
28 Jan0000
29 Jan5410
30 Jan0000
31 Jan1001

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 penalty value was ₹3.74 crore against ₹57.1 lakh in the previous period, a rise of ₹3.16 crore. Banks accounted for ₹2.50 crore across 3 actions, against ₹0 in 0 actions, representing 79.0% of the increase.

02

The severe-action share was broadly unchanged

There were 16 severe actions, or 42.1% of the total, with an average severity of 2.71. The previous period had 22 severe actions and a 41.5% share.

03

A small group of actions accounted for most disclosed penalty value

The largest disclosed penalty was ₹1.20 crore, or 32.3% of the ₹3.74 crore total. The top five actions accounted for 84.3%, while the median penalty was ₹4.0 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. Monetary penalty24 · 63.2%

    Previous 30 · 56.6%

  2. Business restriction12 · 31.6%

    Previous 15 · 28.3%

  3. Licence cancellation2 · 5.3%

    Previous 7 · 13.2%

Lifecycle

Fresh actions, extensions and withdrawals.

  1. Fresh action27 · 71.1%

    Previous 37 · 69.8%

  2. Extension11 · 28.9%

    Previous 15 · 28.3%

Entity types

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

  1. Co-operative bank33 · 86.8%

    Previous 50 · 94.3%

  2. Bank3 · 7.9%
  3. NBFC1 · 2.6%

    Previous 3 · 5.7%

  4. Payment entity1 · 2.6%

Why RBI acted

Overlapping themes; one action may carry several reasons.

  1. Reporting & disclosure16 · 42.1%

    Previous 25 · 47.2%

  2. Capital & exposure norms14 · 36.8%

    Previous 15 · 28.3%

  3. Customer protection10 · 26.3%

    Previous 13 · 24.5%

  4. Other10 · 26.3%

    Previous 14 · 26.4%

  5. Governance & oversight8 · 21.1%

    Previous 6 · 11.3%

  6. Lending norms8 · 21.1%

    Previous 7 · 13.2%

Defining Actions

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

  2. Reserve Bank of India cancels the licence of The Hiriyur Urban Co-operative Bank Ltd., Hiriyur, Karnataka

    Widest orderS5 Severe
    12 Jan 2024licence cancellation

    The Hiriyur Urban Co-operative Bank Ltd., Hiriyur

    The Hiriyur Urban Co-operative Bank Ltd., Hiriyur became subject to the widest order of the period. RBI said the bank lacked adequate capital and earning prospects, breached multiple provisions of the Banking Regulation Act, and that its continuance was prejudicial to depositors and public interest.

    Read case briefRBI source

  3. Reserve Bank of India cancels the license of Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, Gujarat

    Highest severity, single entityS5 Severe
    12 Jan 2024licence cancellation

    Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi

    Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi received the highest-severity action for a single entity. RBI said the bank lacked adequate capital and earning prospects, did not comply with key licensing requirements, and that its continuance was prejudicial to depositors and public interest.

    Read case briefRBI source

What It Cost

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

Median
₹4 L

Previous ₹1 L

Largest
₹1.2 cr

Previous ₹10.54 L

Top five
₹3.15 cr

Previous ₹30.54 L

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₹2.5 cr₹079%
Co-operative bank₹1.18 cr₹46.05 L22.6%
NBFC₹6 L₹11.03 L-1.6%

Entity Coverage

Declared
38
Names extracted
38
Canonical links
38
First seen
8

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

Orders Still in Force

Orders
40
Entities
40
Expiring next
11
Duplicate entity rows
0

Next expiry window: 1 Feb 2024–29 Feb 2024.