The Reserve Bank of India (RBI) has imposed penalty on Rajkot Citizens Co-operative Bank, Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Co-operative Bank (Lucknow), District Co-operative Bank Garhwal and District Co-operative Bank Dehradun. RBI has imposed a total fine of Rs 60.3 lakh on these five banks. The central bank said that penalties have been imposed on co-operative banks due to violation of various regulatory norms.
Mumbai The Reserve Bank of India (RBI) has imposed a total fine of Rs 60.3 lakh on five co-operative banks for violation of various regulatory norms. The co-operative banks on which RBI has imposed penalty include Rajkot Citizens Co-operative Bank, The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Co-operative Bank (Lucknow), District Co-operative Bank, Garhwal and District Co-operative Bank, Dehradun.
Why were banks fined?
The Rajkot Nagrik Sahakari Bank has benefited the directors and their relatives and the firms/institutions in which they are interested. A fine of Rs 43.30 lakh has been imposed on the bank for non-compliance with RBI instructions.
The central bank has imposed a fine of Rs 5 lakh each on The Kangra Co-operative Bank (New Delhi), The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Co-operative Bank (Lucknow) and District Co-operative Bank, Garhwal. Along with this, the company has imposed a penalty of Rs 2 lakh on District Co-operative Bank Dehradun.
Giving information about imposition of fine on co-operative banks, he said that many penalties have been imposed on these banks for non-compliance of various regulatory rules. Additionally, the purpose of these penalties is not to affect the validity of any agreement or transaction made by banks with their respective customers.
