Page 19 - Banking Finance May 2025

ther adopted the Model Bye-laws for
PACS or aligned their existing bye-laws
accordingly.

RBI Intensifies Regulatory
Scrutiny of Cooperative
Ò»©­ Banks; Maharashtra Leads

in Restrictions

The Reserve Bank of India (RBI)
stepped up regulatory actions against
cooperative banks during the financial
year 2024-25, imposing fines on four
State Cooperative Banks (StCBs) and 51
RRBs Record Highest-Ever Profit of Rs. 7,571 Crore District Central Cooperative Banks
in FY24: Finance Ministry (DCCBs), according to a review by In-
dian Cooperative.
Regional Rural Banks (RRBs) have posted a record consolidated net profit
of Rs. 7,571 crore for the financial year 2023-24, the government informed Urban Cooperative Banks (UCBs) faced
Parliament. the most scrutiny, with 215 penalties
imposed. Additionally, seven new UCBs
Minister of State for Finance Pankaj Chaudhary said in a written reply in the
were placed under All-Inclusive
Rajya Sabha that the financial health of RRBs has shown consistent improve-
Directions (AID), limiting their opera-
ment, reflected in key parameters such as Capital to Risk-Weighted Assets tions, while four UCBs were removed
Ratio (CRAR), deposits, advances, non-performing assets (NPA), and credit-
from AID following improved perfor-
deposit (CD) ratios. mance.
The total balance sheet size of RRBs expanded from Rs. 7.04 lakh crore in As of March 31, 2025, Maharashtra led
FY22 to Rs. 8.40 lakh crore in FY24. Net NPA levels fell sharply from 4.7% to with nine UCBs still under AID, fol-
2.4% during the same period, while the credit-to-deposit ratio improved lowed by Karnataka with five, and
from 64.5% to 71.4%, indicating healthier operational performance by the Uttar Pradesh with four. Shimsha
RRBs. Sahkara Bank in Karnataka continues
to function under a High Court stay
Over 12,900 New Coopera- and deepen its grassroots reach. The order despite license cancellation pro-
initiative envisions establishing new ceedings.
tives Established in Two
multipurpose Primary Agricultural RBI also imposed penalties on StCBs
Years: Amit Shah Credit Societies (M-PACS), dairy, and from Odisha, Himachal Pradesh,
More than 12,957 new multi-purpose fishery cooperative societies across all Jharkhand, and Manipur for supervi-
primary agricultural credit societies, panchayats and villages over a five- sory violations, with Himachal
dairy, and fishery cooperative societies year period. Pradesh's Jogindra Central Co-opera-
have been established across India over According to the National Cooperative tive Bank fined twice.
the past two years, Cooperation Minis- Database, as of January 27, 2025,
ter Amit Shah informed Parliament. Rajasthan accounted for 1,995 new RBI Cancels Banking Li-
In a written reply to the Lok Sabha, cooperatives, Odisha 1,535, Uttar cence of Colour Merchants
Shah said the government had ap- Pradesh 1,464, and Jammu and Kash-
proved a plan in February 2023 to mir 1,118. Shah further added that 32 Co-operative Bank
strengthen the cooperative movement states and Union Territories have ei- The Reserve Bank of India (RBI) has

BANKING FINANCE | MAY | 2025 | 17