Categories: BankingCurrent Affairs

RBI Cancels Licenses of 78 UCBs Since 2014

RBI Maintains SBI, HDFC Bank, and ICICI Bank as D-SIBs

The Reserve Bank of India (RBI) has canceled the licenses of 78 Urban Cooperative Banks (UCBs) since 2014. Maharashtra has seen the highest number of cancellations, with 36 UCBs losing their licenses, followed by Uttar Pradesh (14) and Karnataka (8). In 2024 alone, 10 UCB licenses were canceled, affecting banks across Maharashtra, Karnataka, Uttar Pradesh, Gujarat, Rajasthan, Assam, and Andhra Pradesh.

Key Points

Reasons for Cancellation

    • Inadequate capital
    • Poor earning prospects
    • Deteriorating financial position
    • Operations prejudicial to depositors and the public

Recent Statistics

    • 2024: 10 UCBs’ licenses canceled (2 each in Maharashtra, Karnataka, and Uttar Pradesh; 1 each in Gujarat, Rajasthan, Assam, and Andhra Pradesh)
    • 2023: 14 UCBs’ licenses canceled
    • 2022: 12 UCBs’ licenses canceled

Geographic Distribution

    • Maharashtra: 36 UCBs
    • Uttar Pradesh: 14 UCBs
    • Karnataka: 8 UCBs
    • Gujarat: 2 UCBs (latest: Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, January 2024)
    • Other affected states: Rajasthan, Assam, Odisha, Andhra Pradesh, Telangana, West Bengal, Goa, Madhya Pradesh, Kerala

Regulatory Measures

Expansion and Strengthening

    • Increased Housing Loan Limits for UCBs
    • Compliance with Priority Sector Lending (PSL) target of 75% by March 31, 2026
    • Adherence to prudential exposure limits: 15% for single borrowers and 25% for groups
    • Loan limits: At least 50% must be ≤ ₹25 lakh or 0.2% of Tier-I capital, up to ₹1 crore per borrower

Rural Cooperative Banks

    • No closures of State Cooperative Banks (StCBs) or District Central Cooperative Banks (DCCBs) since 2014.

Piyush Shukla

Share
Published by
Piyush Shukla
Tags: Banking
1 year ago

Recent Posts

World Basketball Day 2025 Celebrates Basketball’s Journey to Global Fame

World Basketball Day 2025 highlights the remarkable journey of basketball from a simple indoor game…

15 hours ago

UN Celebrates Second World Meditation Day to Promote Inner Peace Worldwide

The United Nations marked the second World Meditation Day on the 21st December with a…

15 hours ago

Winter Solstice 2025 Observed on Sunday, Bringing the Year’s Shortest Day

The Winter Solstice 2025 occurs on Sunday, December 21 marking the shortest day and longest…

15 hours ago

Haryana Assembly Passes Resolution to Commemorate 350th Martyrdom Year of Guru Tegh Bahadur Ji

The Haryana State Assembly has unanimously passed a resolution to mark the 350th martyrdom year…

1 day ago

Which Country is Known as the Land of Cherry Blossoms?

Every country has something special that makes it famous around the world. Some are known…

1 day ago

Operation Hawkeye: US and Jordan Strike ISIS Sites in Syria

The United States and Jordan have carried out a major military operation in Syria called…

1 day ago