RBI has imposed penalty on five banks. A penalty of Rs 5 lakh each has been imposed on two banks. The Central Bank has given this information on Thursday.
RBI Action: Reserve Bank of India has taken action against five cooperative banks for non-compliance of rules. RBI has imposed a total fine of Rs 14 lakh on these banks. The central bank has taken these actions under Section 47A (1) (C), Section 46 (4) (i) I and 56 of the Banking Regulation Act. However, this will not affect the transactions taking place between banks and customers.
A fine of Rs 5 lakh each was imposed on these two banks
A fine of Rs 5 lakh has been imposed on Jankalyan Co-operative Bank Limited, Mumbai. The Bank has failed to report to RBI the information relating to credit of certain eligible credit accounts on the reporting platform within the prescribed time. A penalty of Rs 5 lakh has also been imposed on Urban Co-operative Bank Limited, Pune. The bank did not comply with the prudential interbank successful exposure limits. Also, for shortfall in maintenance of minimum balance in savings bank accounts, fixed penal charges have been imposed instead of penal charges proportionate to the extent of shortfall. Apart from this, the bank also failed to classify some accounts as non-performing assets (NPAs).
A fine of Rs 2 lakh was imposed on this bank
The Reserve Bank of India has imposed a fine of Rs 2 lakh on The Patan Urban Co-operative Bank Limited, Satara (Maharashtra). This bank failed to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed period.
Fine of Rs 1 lakh each imposed on these two banks
A fine of Rs 1 lakh has been imposed on Pune Municipal Corporation Servant Co-operative Urban Bank Limited. This bank failed to comply with the instructions issued on maintenance of deposit accounts by (urban) co-operative banks. Could not even conduct annual review of inoperative accounts. Meanwhile, a penalty of Rs 1 lakh has been imposed on Pune Merchants Co-operative Bank Limited for similar reasons. Before taking action against all the banks, the Reserve Bank of India had issued a show cause notice and asked, “Why penalty should not be imposed on them?” The decision to impose monetary penalty was taken only after the response of the banks.
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