RBI has imposed a fine of over Rs 5 lakh on The Sarvodaya Sahakari Bank Limited and Dhanera Mercantile Co-operative Bank Limited. The reason for action against both the banks is also the same.
RBI Action: Reserve Bank of India’s action continues in October. Keeping in mind the safety of customers and rules, RBI often takes action against banks. According to the information released on October 3, the Central Bank has imposed penalty on 4 co-operative banks. These four banks are located in different parts of Gujarat.
Action taken against these banks
RBI imposed Rs 6 lakh on The Sarvodaya Co-operative Bank Ltd, (Madosa), Rs 6.50 lakh on Dhanera Mercantile Co-operative Bank Ltd, Rs 3.50 lakh on Janata Co-operative Bank Ltd, (Godhra) and Rs 1 lakh on Maninagar Co-operative Bank Ltd (Ahmedabad). A fine of Rs.
What is the reason?
A fine of more than Rs 5 lakh has been imposed on The Sarvodaya Sahakari Bank Limited and Dhanera Mercantile Co-operative Bank Limited. The reason for action against both the banks is also the same. The Reserve Bank pointed out that these banks failed to comply with the instructions relating to “loans and advances to directors, relatives and firms in which they are interested”, USB and “Director as Surety/Guarantor – Clarification”. Therefore, monetary penalty has been imposed on them. Janata Sahakari Bank could not comply with the rules related to “donations to trusts and institutions” and “loans and advances to directors, relatives and firms”. Maninagar Co-operative Bank Limited found no violation of rules related to USB and “interest on deposits”.
Customers will not be affected
RBI has made it clear that this action has been taken in view of the lapses committed by the banks. This will not have any impact on the transactions taking place between customers and banks.
