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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 2506
ANSWERED ON MONDAY, AUGUST 3, 2026/ SHRAVANA 12, 1948 (SAKA)
Urban Cooperative Banks under RBI Regulatory Action
2506. SHRI PUSHPENDRA SAROJ:
Will the Minister of FINANCE be pleased to state:
(a) the number of Urban Cooperative Banks placed under restrictions or regulatory action by
the Reserve Bank of India (RBI) since 2021, State-wise, particularly for Uttar Pradesh;
(b) the number of cooperative banks found violating capital adequacy, lending or governance
norms, along with the action taken thereon, State-wise;
(c) whether the Government has received complaints regarding fraud, cyber security breaches,
or irregular transactions in Urban Cooperative Banks, if so, the details thereof and the action
taken, State-wise, particularly for Uttar Pradesh;
(d) the amount of deposits locked in liquidated or financially distressed cooperative banks and
the status of payments made to depositors, State-wise; and
(e) the measures taken by the Government to strengthen supervision, prevent financial
irregularities and protect the interests of depositors in cooperative banks?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) As reported by Reserve Bank of India (RBI), State-wise details of Urban Cooperative Banks
(UCBs) placed under All Inclusive Directions (AID) since 2021 is given at Annexure-I.
(b) RBI has informed that as on 31.03.2026, three UCBs of Tier-3 category have been found
to be violating capital adequacy norms. RBI in exercise of its powers conferred under Banking
Regulation Act, 1949 have taken various actions including removal of directors and imposition
of monetary penalties to prevent such violations. The State-wise details related to imposition
of monetary penalty on Urban Cooperative Banks (UCBs) for violations related to capital
adequacy, lending, or governance norms since 2021 is given at Annexure-II.
(c) As informed by RBI, as on 30.06.2026, a total of 3.53 lakh domestic payment frauds have
been reported amounting to Rs. 489 crore across all banks including UCBs.
In order to prevent these frauds various measures have been undertaken which, inter-alia,
includes strengthening fraud risk management in banks, including issuing caution advises,
advising banks for rotation and mandatory leave of staff, compliance monitoring, cyber
security advisories, etc.
(d) As per the information received from RBI, details of claim settled by Deposit Insurance
and Credit Guarantee Corporation (DICGC) is as under: -Amount ₹crore (as on
Scheme Banks
March 31, 2026)
Banks under Liquidation/ Amalgamation 440 11,778.89
(Section 17 & 18 of DICGC Act, 1961)
Banks under restriction/ All-inclusive 80 7,152.51
Direction (Section 18A)
Total 488 (32 18,931.40
common)
State wise details of claims settled by DICGC as on 31.03.2026 is given at Annexure-III.
(e) In order to protect the interests of Depositors of Cooperative Banks and prevent financial
irregularities, Government has taken various measures to strengthen its supervisory
mechanism. These measures, inter-alia, includes:
Reserve Bank of India (RBI) supervises Urban Co-operative Banks (UCBs) under
various provisions of the Banking Regulation Act, 1949 and other applicable statutes.
The Supervisory framework has been reworked to have more focus on addressing the
root causes of risk build-up in the UCBs, especially in areas such as Governance and
Assurance Functions, and appropriate policy guidelines have been issued for
implementation by the UCBs.
Further, Reserve Bank’s on-site supervisory examinations have also been strengthened
significantly in recent years through a unified and harmonised supervisory approach for
UCBs.
The Prompt Corrective Action (PCA) Framework requires the identified UCBs to
initiate and implement remedial measures in a timely manner, to restore their financial
health and protect the interest of depositors.
RBI has also implemented a financial safety net for the account holders of banks
(including cooperative banks) in the form of Deposit Insurance through DICGC.
RBI has launched awareness campaign “RBI Kehta Hai” to bring awareness about
different types of frauds and their modus-operandi.
*****Annexure-I
Annexure referred to in part (a) of Lok Sabha Un-Starred Question No. 2506 on "Urban
Cooperative Banks under RBI Regulatory Action" answered on 03.08.2026
S.No. Name of the State Number of banks Number of
placed under AID banks under
AID as on July
27, 2026
1 Andhra Pradesh 2 0
2 Assam 3 2
3 Bihar 1 0
4 Gujarat 4 2
5 Himachal Pradesh 1 1
6 Karnataka 12 4
7 Kerala 2 1
8 Madhya Pradesh 2 1
9 Maharashtra 41 10
10 New Delhi 2 2
11 Punjab 1 0
12 Rajasthan 1 0
13 Tamil Nadu 1 0
14 Uttar Pradesh 12 2
15 Uttarakhand 1 1
16 West Bengal 1 1
Grand Total 87 27*
*Source: RBIAnnexure-II
Annexure referred to in part (b) of Lok Sabha Un-Starred Question No. 2506 on "Urban
Cooperative Banks under RBI Regulatory Action" answered on 03.08.2026
Sr. No. State Number of UCBs
1 Andhra Pradesh 6
2 Chhattisgarh 4
3 Goa 1
4 Gujarat 81
5 Haryana 1
6 Himachal Pradesh 4
7 Jammu & Kashmir 2
8 Jharkhand 1
9 Karnataka 16
10 Kerala 9
11 Madhya Pradesh 8
12 Maharashtra 108
13 Meghalaya 1
14 Mizoram 1
15 New Delhi 2
16 Odisha 3
17 Puducherry 1
18 Punjab 3
19 Rajasthan 2
20 Tamil Nadu 35
21 Telangana 11
22 Uttar Pradesh 21
23 West Bengal 6
Total 327
Source: RBIAnnexure-III
Annexure referred to in part (d) of Lok Sabha Un-Starred Question No. 2506 on "Urban
Cooperative Banks under RBI Regulatory Action" answered on 03.08.2026
Sum of Claims Settled (In
S.No. Name of State
Crore)
1 Andhra Pradesh 346.55
2 Assam 100.64
3 Bihar 76.04
4 Chhattisgarh 34.62
5 Delhi 27.06
6 Goa 397.71
7 Gujarat 2,509.21
8 Hariyana 3
9 Himachal Pradesh 139.71
10 Jharkhand 9.39
11 Karnataka 1,718.32
12 Kerala 574.2
13 Madhya Pradesh 118.69
14 Maharashtra 12,160.52
15 Manipur 0.03
16 Odisha 27.33
17 Punjab 5.43
18 Rajasthan 144.29
19 Sikkim 17.3
20 Tamil Nadu 51.42
21 Telangana 13.71
22 Uttar Pradesh 376.91
23 Uttarakhand 1.65
24 West Bengal 77.68
Grand Total 18931.40
Source: RBI