Four banks violated the rules. RBI has imposed monetary penalty after the allegations were confirmed. Let us know whether this action will also affect the customers?
RBI Action: The Reserve Bank of India has taken action against four cooperative banks. These banks are located in Gujarat and Maharashtra. RBI has given this information through a press release on Monday, 16 December. The central bank has also issued orders to all the banks.
Tarapur Co-operative Urban Bank Limited, District Anand, Gujarat has been fined Rs 1 lakh. Vaish Sahakari Bank Limited, Mumbai, Maharashtra has been fined Rs 5.96 lakh. A penalty of Rs 15 lakh has been imposed on SBPP Sahakari Bank Limited, Kila Pardi, District Valsad. At the same time, RBI has imposed a fine of Rs 1 lakh on Bhadran People’s Co-operative Bank Limited, District Anand, Gujarat.
What is the reason for action? (RBI Monetary Penalty)
Tarapur Co-operative Urban Bank Ltd. failed to adhere to the prudential inter-bank counterparty risk limit.
Bhadran People’s Co-operative Bank Ltd. accepted interest-free deposits in accounts other than current account. Also failed to upload KYC records of customers to the Central KYC Recorder Registry within the prescribed time limit.
Vaish Sahakari Bank Ltd. failed to deposit the prescribed amount in the MSE Refinance Fund kept with SIDBI.
SBPP Sahakari Bank Ltd. failed to classify loan accounts of some borrowers as non-performing assets.
Customers will not be affected (Bank News)
RBI conducted an inspection in March 2023 regarding the financial position of the bank. During this, deficiencies in compliance with the rules were revealed. After which a show cause notice was issued to the banks. After the reply to the notice and investigation, the central bank decided to impose a monetary penalty. This action will not affect the transactions or agreements between the bank and the customers.
