Central bank RBI has imposed a fine of Rs 1 lakh on Bank Employees Co-operative Bank, Rs 2 lakh on National Co-operative Bank, Rs 1.50 lakh on Rohika Central Co-operative Bank and Rs 7.50 lakh on Gujarat State Employees Co-operative Bank
Reserve Bank of India (RBI) has imposed a fine on four co-operative banks for not following the rules. RBI gave this information today on July 1. RBI said in a release that these banks include Gujarat State Employees Co-operative Bank, Rohika Central Co-operative Bank, National Co-operative Bank and Bank Employees Co-operative Bank.
The central bank has imposed a fine of Rs 1 lakh on Bank Employees Co-operative Bank, Rs 2 lakh on National Co-operative Bank, Rs 1.50 lakh on Rohika Central Co-operative Bank and Rs 7.50 lakh on Gujarat State Employees Co-operative Bank.
This is the reason for the fine on Gujarat State Employees Co-operative Bank
Gujarat State Employees Co-operative Bank was fined because it did not disclose the penalty imposed by RBI in the ‘Notes to Accounts’ of the balance sheet in its annual report.
The release said that it also did not provide documents and complete information related to the affairs of the bank to the RBI inspection officer. It violated the Prudential Inter-Bank (Counterparty) Exposure Limit and did not pay interest on matured term deposits at the applicable rate from the maturity date to the date of their repayment.
Why fine on National Co-operative Bank and Bank Employees Co-operative Bank?
The release said that National Co-operative Bank has been fined for not following some guidelines related to RBI’s KYC. Along with this, Bank Employees Co-operative Bank has also been penalized for not following RBI’s instructions on KYC norms.
Rohika Central Co-operative Bank was fined for this reason
RBI said that Rohika Central Co-operative Bank was fined for failing to do risk categorization of all customers, review the risk categorization of accounts from time to time and update KYC documents from time to time.
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