RBI has imposed a total fine of Rs 61 lakh on Saraswat Co-operative Bank Ltd, Rajkot Nagarik Co-operative Bank Ltd and Basin Catholic Co-operative Bank Ltd.
RBI Imposed Monetary Penalty: In September, the Reserve Bank of India has taken strict action against many banks. On Thursday, RBI shared information about imposing fine on three banks. The Central Bank came to know about the shortcomings of three banks during the investigation. After which show cause notice was issued. After being dissatisfied with the response, it has been decided to impose monetary penalty.
Fine of lakhs imposed on these banks
RBI has imposed a fine of Rs 23 lakh on Saraswat Co-operative Bank Ltd (Mumbai), Rs 13 lakh on Rajkot Nagarik Co-operative Bank Ltd (Gujarat) and Rs 25 lakh on Basin Catholic Co-operative Bank Ltd (Vasai, Maharashtra).
What is the reason?
Basin Catholic Co-operative Bank Limited has complied with the provisions of Section 56, Section 20 (1) (b) (iii) of the Banking Regulation Act 1949 and RBI regulations relating to “Loans and Advances to Directors, their Relatives and Firms”. I failed. Rajkot Nagrik Sahakari Bank Limited could not comply with the instructions issued by the Central Bank on “Interest on Deposits”. The Reserve Bank has imposed a fine on Saraswat Sahakari Bank Limited for violating rules related to “exposure norms and statutory/other restrictions”.
Customers will not be affected
RBI has made it clear that this action was taken against the banks in view of their shortcomings. This will not have any impact on customers. They will be able to transact as usual.
