Increasing Fines on Cooperative Banks

The RBI has been imposing fines on cooperative banks, with the number of fines increasing significantly each year. In 2020, the RBI fined only 22 cooperative banks, while in 2021 the number rose to 124, and in 2022 it reached 180. This rise in fines suggests that cooperative banks may be flouting banking rules. One significant issue leading to fines is corporate governance problems, where bank directors misuse their power and approve loans for themselves, family members, or companies they are involved in.