By News Desk 
The Reserve Bank of India (RBI) continues its vigilant oversight over financial institutions, ensuring customer safety and compliance with regulatory norms. In April 2025, RBI has taken major enforcement actions against several cooperative and commercial banks for regulatory violations and financial instability.
RBI Cancels Licenses of 4 Cooperative Banks
RBI has revoked the banking licenses of four urban cooperative banks, citing insufficient capital and lack of sustainable earning potential. These banks are no longer permitted to conduct any banking operations, including accepting deposits or allowing withdrawals.
Here is the list of banks whose licenses were canceled:
- Anjana Urban Co-operative Bank Ltd, Aurangabad (Maharashtra) – License canceled on 22 April 2025
- Color Merchants Co-operative Bank Ltd, Ahmedabad (Gujarat) – License canceled on 16 April 2025
- Imperial Urban Co-operative Bank Ltd, Jalandhar (Punjab) – License canceled effective 25 April 2025
- Shankarrao Mohite Patil Sahakari Bank Ltd, Akluj (Maharashtra) – License canceled on 11 April 2025
Why Were These Licenses Canceled?
According to RBI, these banks:
- Had negative net worth or inadequate capital reserves
- Were unable to meet depositor obligations
- Posed a risk to customer interests and financial stability
RBI noted that continuing operations of these banks could have been detrimental to the public and depositors at large.
What Happens to Customers?
Although operations have ceased, customers of these banks are eligible for deposit insurance coverage of up to ₹5 lakh per depositor, through the Deposit Insurance and Credit Guarantee Corporation (DICGC). Claims can be made by contacting the respective banks or DICGC directly.
RBI Fines 8 Banks for Regulatory Non-Compliance
In separate actions, the RBI also imposed monetary penalties on 8 banks for violations of various banking norms. The fines were related to deficiencies in regulatory compliance, and not customer-related issues. RBI clarified that banking operations for customers remain unaffected.
Banks Fined by RBI in April 2025:
- Aryavart Bank, Lucknow
- Shri Ganesh Sahakari Bank Ltd, Nashik, Maharashtra
- Citibank N.A
- Punjab National Bank (PNB)
- IDFC First Bank Ltd
- Kotak Mahindra Bank Ltd
- Indian Overseas Bank (IOB)
- Indian Bank
The specific nature of the violations varied for each institution and included lapses in KYC norms, loan disbursement irregularities, and delayed regulatory reporting.