Let us inform that the Reserve Bank has also imposed penalty on The Kutch Mercantile Co-operative Bank, Bhabhar Department Civil Co-operative Bank, Progressive Mercantile Co-operative Bank and Shri Morbi Civil Co-operative Bank.
Reserve Bank of India (RBI) is continuously taking action against violation of bank rules. In this series, RBI has imposed a fine of Rs 2 lakh on Thane District Central Cooperative (TDCC) Bank. This penalty has been imposed for alleged violation of bank rules by sanctioning a loan to a director of the bank. RBI, in an order issued on January 28, imposed a fine of Rs 2 lakh on TDCC Bank for violation of Sections 20 and 56 of the Banking Regulation Act, 1949.
NABARD conducts inspection: The National Bank for Agriculture and Rural Development (NABARD) had conducted an inspection on March 31, 2022 with regard to the financial position of the cooperative bank. The investigation found that TDCC Bank had sanctioned a loan to one of its directors, which was against the rules.
After this a show cause notice was issued to the bank. After considering the bank’s response to the notice and oral submissions during the personal hearing, RBI came to the conclusion that the allegation of violation of statutory provisions was proved. After this, fine has been imposed on this bank.
Fine on these banks too: The Central Reserve Bank has also imposed fine on The Kutch Mercantile Co-operative Bank, Bhabhar Department Civil Co-operative Bank, Progressive Mercantile Co-operative Bank and Shri Morbi Civil Co-operative Bank. The central bank has imposed a fine of Rs 7 lakh on Progressive Mercantile Co-operative Bank, Rs 3 lakh on The Kutch Mercantile Co-operative Bank and Rs 50,000 each on Shri Morbi Civil Co-operative Bank and Bhabhar Vibhag Civil Co-operative Bank.
Fine on these banks too: A few days earlier, the Reserve Bank had imposed monetary penalty on 5 co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: The Manmandir Co-operative Bank Limited, The Lakhvad Nagrik Co-operative Bank Limited, The Contai Co-operative Bank Limited, Sarvodaya Co-operative Bank Limited and Sanmitra Co-operative Bank Limited.
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