RBI Action: The Reserve Bank of India (RBI) on July 15 said it has imposed monetary penalty on five co-operative banks for rule violations.
These banks are Sivagangai District Central Co-operative Bank, Abasaheb Patil Rendal Sahakari Bank, Krishna Sahakari Bank, Nagarik Sahakari Bank, and The Mahabaleshwar Urban Cooperative Bank, RBI said in a release.
The central bank imposed Rs 2 lakh penalty each on The Mahabaleshwar Urban Cooperative Bank, Nagarik Sahakari Bank, and Krishna Sahakari Bank, Rs 1 lakh on Abasaheb Patil Rendal Sahakari Bank, and Rs 25,000 on Sivagangai District Central Co-operative Bank, the release said.
The penalty on The Mahabaleshwar Urban Cooperative Bank was imposed as the bank had sanctioned unsecured advances beyond the prescribed regulatory limit; and not adhered to share linking to borrowings guidelines, while sanctioning loans, RBI said.
Nagarik Sahakari Bank was penalised as a bank charged for activation of their inoperative accounts, the release said.
Further, Krishna Sahakari Bank was penalised by the central bank because the charge of sanctioning loans to nominal members beyond the prescribed limit was sustained on the bank.
