RBI has imposed the lowest penalty on Nagrik Sahakari Bank Limited. The highest penalty has been imposed on Surat National Co-operative Bank.
RBI Action : Reserve Bank of India is always strict regarding the rules. This can be gauged from the action of RBI. The Central Bank has taken control over five public sector banks. Heavy fines have been imposed for violating the rules. The highest penalty has been imposed on Surat National Co-operative Bank of Gujarat. The penalty amount is Rs 6 lakh. This bank was not able to provide the facility to reply to SMS and email alerts related to electronic banking transactions. A fine of Rs 2 lakh each has been imposed on two banks. Action has been taken against all the banks under Section 47A (1) (c) read with Section 46 (4) (i) and 56 of the Banking Regulation Act 1949.
A fine of Rs 2 lakh each was imposed on these banks
A fine of Rs 2 lakh has been imposed on Mahila Sahakari Nagrik Bank Limited (Bharuch, Gujarat). The bank breached inter-bank aggregate and counterparty exposure limits. Besides, he was not able to review the classification of accounts at the stipulated time. In a loan sanctioned by Vadnagar Nagrik Sahakari Bank Limited (Gujarat), a relative of one of the directors of the bank was found as a guarantor. Not only this, the bank failed to pay interest on the matured term deposits at the rate applicable from the date of maturity till the date of their repayment. After which RBI issued show cause notice. And being dissatisfied with the reply, monetary penalty has been imposed.
A fine of Rs 3 lakh was imposed on this bank
People’s Co-operative Bank Limited (Dholka, Gujarat) The Bank failed to pay interest on matured term deposits at the applicable rate from the date of maturity till the date of their repayment. Also, in a loan sanctioned by the bank, a relative of one of the bank’s directors was found to be the guarantor. Therefore the Central Bank imposed a fine of Rs 3 lakh.
Lowest penalty imposed on this bank
RBI has imposed a fine of Rs 1 lakh on Chhapi Nagrik Sahakari Bank Limited (Banaskantha, Gujarat). In a loan sanctioned by this bank, a relative of one of the directors of the bank was found to be the guarantor.
Will customers be affected?
The Reserve Bank has made it clear that this action will not affect the transactions taking place between customers and the bank. Keeping in view the shortcomings of the banks, monetary penalty has been imposed.
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