Jagran Bureau, New Delhi. Punjab and Maharashtra Co-operative Bank (PMCSince the episode, the work that the central bank had started to repair the cooperative banking system of the country is still going on. Reserve Bank of India on Monday (RBI) together with 8 State Co-operative Banks (State Cooperative Banks) and a non-banking financial company (NBFC) has given a warning to the entire banking system in a way. If we look at the record of one month before this, during this period more than 30 co-operative banks have been fined while action has been taken on more than a dozen co-operative banks under Section 35A of the Banking Regulation Act, 1956. Under this section, the normal business of banks (granting loans or accepting deposits etc.)

Sources say that in recent months, the RBI has become very strict about the rules on the entire banking sector. This is the reason that not only co-operative banks but also commercial banks like Kotak Mahindra Bank, IndusInd Bank, Federal Bank, Bank of India, Indian Bank have been fined. Besides, licenses of a dozen NBFCs have also been canceled in recent months.

The reason being told is that the RBI does not want to leave a weak link in the financial sector in any way, given the challenges of the rapid changes in the financial sector. In such a situation, it has become necessary that the message should be sent to the entire financial sector that the first condition of working is to follow the rules set by the government and the central bank in letter and spirit.

After the PMC episode, the RBI has been given full responsibility of regulation of urban cooperative banks. In such a situation, he is showing more activeness about these banks. The reason for the banks that are being fined is that they have not followed the prescribed rules. The threat of this strictness of RBI is clearly visible in non-banking financial companies (NBFCs). In the month of July, where 4 NBFCs have themselves handed over their licenses to the central bank. Subsequently, on August 08, 2022, RBI canceled the licenses of 2 NBFCs (Alarming Finvest Limited and Achal Finance Limited). In May 2022, RBI had simultaneously canceled the licenses of 22 NBFCs.

Edited By: Manish Mishra