RBI has imposed monetary penalty on five co-operative banks for violating rules. Let us know if your account is among these?
RBI Imposed Monetary Penalty: Reserve Bank of India has taken strict action against five cooperative banks. Heavy fines have been imposed on five co-operative banks of Karnataka, Tamil Nadu, Maharashtra and Uttar Pradesh for violating rules. Action has been taken against all the banks under the provisions of Section 47A (1) C read with Section 46 (4) (i) and 56 of the Banking Regulation Act 1949. Let us know what are the names of these banks and why RBI has taken such a big action against these banks-
This bank violated NABARD instructions
By an order issued on February 28, 2024, the central bank has imposed a monetary penalty of Rs 50000 on Chikkamagaluru District Co-operative Central Bank Limited, Karnataka. This bank failed to comply with the instructions of NABARD. The bank delayed reporting the fraud to NABARD.
This bank violated loan related rules
RBI has imposed a fine of Rs 25 thousand on Dindigul Urban Co-operative Bank Limited located in Dindigul, Tamil Nadu. The bank is accused of sanctioning loans to nominal members in excess of the prescribed limit. After investigation, it was decided to impose monetary penalty on the bank.
A fine of more than Rs 58 lakh was imposed on this bank
A fine of Rs 59.90 lakh has been imposed on The Lakshmi Co-operative Bank Limited, Nashik by order dated March 12, 2024. This bank did not constitute the Board of Management within the extended time limit prescribed by RBI. Also, loans were sanctioned to nominal members in excess of the prescribed limit. Renew or open term deposits at interest rates higher than those offered by SBI for the same period.
Fine of Rs 28 lakh to lakh imposed on these banks
By order dated March 13, 2024, RBI has imposed a fine of Rs 28.30 lakh on Solapur Janata Sahakari Bank Limited, Solapur. The Bank had appointed a member to the Board of Management who did not meet the fit and proper criteria. The Bank did not reconstitute the BOM despite specific instructions issued by RBI. Violated the directive order issued under SAF and sanctioned loans with risk weight more than 100% during the financial year 2021-22.
A fine of Rs 1 lakh was imposed on this bank
A fine of Rs 1 lakh has been imposed on Mathura District Cooperative Bank Limited, Uttar Pradesh by RBI order dated 13 February 2024. The bank has been accused of not disposing of an immovable property within the maximum period prescribed under the BR Act, maintaining which the RBI has imposed a penalty on the bank.
