RBI imposed Rs 26.60 lakh on The Kalupur Commercial Co-operative Bank, Rs 13.30 lakh on Karad Urban Co-operative Bank, Rs 5 lakh on Janata Co-operative Bank, Rs 1 lakh on Pragati Mahila Nagrik Co-operative Bank and Rs 1 lakh on District Co-operative Central Bank. A fine of Rs 75,000 has been imposed
The Reserve Bank of India (RBI) on March 21 said it has imposed monetary penalties on five co-operative banks that broke rules. These include Pragati Mahila Nagrik Co-operative Bank, Janata Co-operative Bank, District Co-operative Central Bank, Karad Urban Co-operative Bank and The Kalupur Commercial Co-operative Bank.
Who is fined how much?
The central bank has sanctioned Rs 26.60 lakh on The Kalupur Commercial Co-operative Bank, Rs 13.30 lakh on Karad Urban Co-operative Bank, Rs 5 lakh on Janata Co-operative Bank, Rs 1 lakh on Pragati Mahila Nagarik Co-operative Bank and District Co-operative Central Bank. A fine of Rs 75,000 has been imposed on him.
What is the reason for the fine?
The penalty was imposed on Kalupur Commercial Co-operative Bank because the bank did not transfer the eligible amount to the Depositor Education and Awareness Fund within the stipulated period. RBI said that Karad Urban Co-operative Bank was penalized for non-compliance of certain instructions issued by RBI on ‘Interest Rate on Deposits’.
Apart from this, penalty has been imposed on Janata Sahakari Bank for sanctioning gold loans in excess of the prescribed regulatory limit under the Bullet Repayment Scheme and for sanctioning loans to its nominal members in excess of the prescribed regulatory limit.
