RBI has imposed fine on five banks for violating the rules. Let’s find out why the central bank took this step and will it affect the customers as well?
RBI Action: The Reserve Bank of India has taken strict action against five banks. This list includes 4 banks from Madhya Pradesh. One bank is located in Maharashtra. RBI has given this information through a press release on Thursday, December 19. All the banks are accused of violating the rules.
RBI has imposed a fine of Rs 1 lakh each on Shri Vaibhav Laxmi Mahila Nagrik Sahakari Bank Limited (Jhabua), Guna Nagrik Sahakari Bank Limited and Raj Rajeshwari Mahila Nagrik Sahakari Bank Limited (Shajapur) of Madhya Pradesh. Indore Paraspar Sahakari Bank Limited has been fined Rs 4.5 lakh. The central bank has imposed a fine of Rs 15 lakh on Bharat Co-operative Bank (Mumbai) Limited. All the banks are accused of violating the rules.
Why did RBI impose fines on banks?
Shri Vaibhav Laxmi Mahila Nagrik Sahakari Bank Maryadit, Bharat Co-operative Bank (Mumbai) Ltd., Guna Nagrik Sahakari Bank Maryadit and Raj Rajeshwari Mahila Nagrik Sahakari Bank Maryadit failed to deposit the specified amount in the MSC Refinance Course kept with SIDBI against shortfall in achievement of PSL target for the financial year 2022-23 within the stipulated time despite issuance of warning letters. Bharat Co-operative Urban Bank Ltd. failed to classify loan accounts of certain borrowers as non-performing assets.
Will it affect customers?
The central bank had issued show cause notices to all banks. This decision was taken only after the allegations were confirmed during the investigation. According to the RBI statement, this action is based on deficiencies in compliance with the rules. Its purpose is not to affect any transaction or agreement between banks and customers.
