RBI took strict action against these 5 banks, why imposed a fine of lakhs?
RBI Penalty on Banks: Reserve Bank of India has taken strict action against banks. RBI has now imposed heavy fine on five cooperative banks of Gujarat for not following the rules properly.
HR Mandi Bhav: RBI Penalty on Banks: Reserve Bank of India has taken strict action against banks. RBI has now imposed heavy fine on five cooperative banks of Gujarat for not following the rules properly.
RBI has imposed a fine ranging from Rs 50,000 to Rs 5 lakh on these banks. Let us tell you which banks have been fined by RBI and why -
In separate statements on Thursday, the central bank said that in the order issued on December 13, 2023, it has imposed a fine on Vadodara's Shri Bharat Sahakari Bank for failing to comply with its guidelines on keeping deposits in other banks and violating the interest on deposits rules of 2016. Imposed a fine of Rs 5 lakh for violation.
RBI said the penalty on each of these five banks is based on deficiencies in regulatory compliance. It is not intended to pass orders on the validity of any transaction or agreement entered into by the Bank with its customers.
In another case, the RBI, in an order issued on December 7, 2023, has charged Sankheda Nagarik Cooperative Bank, located at Sankheda in Chhota Udaipur district of Gujarat, for non-compliance of instructions in giving loans and advances to directors, relatives and desired firms/institutions and Imposed a fine of Rs 5 lakh on violation of norms by primary co-operative banks on deposits in other banks.
In an order issued on December 8, 2023, the central bank imposed a fine of Rs 1.50 lakh on Bhuj Commercial Co-operative Bank, located in Kutch district of Gujarat, for non-compliance with KYC (Know Your Customer) instructions and non-payment of interest rates on deposits.
Planted. RBI, in its December 13 order, imposed a fine of Rs 50,000 on Limdi Municipal Cooperative Bank, located in Limdi, Dahod district of Gujarat, for non-compliance with deposit rates.
In another order dated December 7, 2023, the RBI imposed a fine of Rs 1.50 lakh on the Co-operative Urban Bank, based in Paralakhemundi, Gujarat, for non-compliance of various directions.