RBI has imposed penalty on four cooperative banks. The highest penalty has been imposed on Shri Lodra Nagrik Sahakari Bank Limited.
RBI Action: Reserve Bank of India has imposed heavy monetary penalty on four cooperative banks for violating rules. The Central Bank has given this information on Monday, November 6. Action has been taken against all the banks under the provisions of Section 47A (1) (c) read with Section 46 (4)(i) and 56 of the Banking Regulation Act 1949.
Fine imposed on these banks
The three banks included in this list are located in different districts of Gujarat. One bank is from Tamil Nadu. A monetary fine of Rs 4 lakh has been imposed on Shri Lodra Nagrik Sahakari Bank Limited (Gandhinagar, Gujarat). A fine of Rs 3.50 lakh has been imposed on Malpur Nagrik Sahakari Bank Limited (Malpur Arvali District Gujarat). A fine of Rs 25,000 has been imposed on Limbassi Urban Co-operative Bank Limited, located in Kheda district of Gujarat. RBI has imposed a fine of Rs 50,000 on Jolarpet Co-operative Urban Bank Limited, located in Vellore district of Tamil Nadu.
This is the reason
All these banks have violated the rules related to loans. A guarantor of the loan sanctioned by Mr. Lodra Nagarik Cooperative Bank turned out to be a relative of the director. Apart from this, the bank also violated prudential inter-bank aggregate exposure limits and inter-bank counterparty exposure limits. In view of this, RBI issued a notice asking the bank, “Why should not a penalty be imposed on them?” The decision to impose monetary penalty was taken only after the bank’s reply. Malpur Nagrik Sahakari Bank Limited breached prudential inter-bank aggregate exposure limits and prudential inter-bank counterparty exposure limits. One of the guarantors of the loan sanctioned by Limbassi Urban Co-operative Bank Limited turned out to be a relative of the directors. Jolarpet Co-operative Bank Ltd also faces similar allegations.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
