RBI has once again shown strictness regarding the rules. Five banks have been fined. Let us find out why the central bank took this step and will it also affect the customers?
RBI Action: Five cooperative banks have violated the rules. This was revealed during a statutory inspection conducted by RBI. The Reserve Bank of India has taken strict action against these banks for not complying with the guidelines properly. After the allegations were confirmed, a fine of lakhs has been imposed. In this regard, the central bank has also issued a statement on March 20.
Srinivasa Padmavati Co-operative Urban Bank Limited located in Telangana has been fined Rs 1.20 lakh, Sind Co-operative Urban Bank Limited Rs 1.30 lakh and The Karimnagar Co-operative Urban Bank Limited Rs 3.10 lakh. The Karnataka Co-operative Bank Limited Muddebihal has been fined Rs 5 lakh and The Kalaikudi Co-operative Town Bank Limited Rs 50 thousand.
Four banks violated rules related to PSL target
Srinivasa Padmavati Co-operative Urban Bank Ltd., Sind Co-operative Urban Bank Ltd., The Karimnagar Co-operative Urban Bank Ltd. and The Karnataka Co-operative Bank Ltd. All the four banks failed to deposit the prescribed amount in the refinance fund kept with SIDBI against the shortfall in achieving the PSL target for the financial year 2022-23.
These banks violated the rules related to loans and advances
The Kalaikudi Co-operative Town Bank Limited did not follow the instructions issued under AAF and approved new loans and advances which were beyond single and group borrower risk limits. Apart from this, fixed deposits/NSC/KVP and insurance were also not backed by collateral security.
Customers should not worry
RBI has taken action against the five banks for not complying with the rules properly. Its purpose is not to affect the validity of any transaction or agreement between the customers and the bank. The central bank has issued a statement. If you also have an account in any of these banks, then there is no need to worry.
