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
5 months ago

Recent Posts

Celebrating Good Governance Day- Honouring Atal Bihari Vajpayee’s Legacy

Good Governance Day, also known as Sushashan Diwas, is observed annually on December 25 in…

14 hours ago

President Appoints New Governors For Five States

In a significant move aimed at reorganizing governance and addressing political and administrative challenges, President…

18 hours ago

December 25th Current Affairs Challenge

Exams such as SSC, Banking, Railways, and state-level tests offer paths to prestigious positions in…

1 day ago

What is the Old Name of Mysore?

Mysore, a city in the southern state of Karnataka, India, is famous for its rich…

2 days ago

India Squad For Champions Trophy 2025

The upcoming Champions Trophy 2025 marks the ninth edition of the ICC Champions Trophy, featuring…

2 days ago

ICC Champions Trophy Schedule 2025 Announced- India vs Pakistan

The 2025 ICC Champions Trophy is set to mark the ninth edition of this prestigious…

2 days ago