RBI has imposed a fine of Rs 12.50 lakh on four banks. The highest penalty has been imposed on Lal Bagh Cooperative Bank Limited.
RBI Imposed Penalty Over Four Banks: Reserve Bank of India has now imposed penalty on four banks. This information was given through the Central Bank press release on 18th September i.e. today.
In this list, three banks are from Gujarat and one from Maharashtra. The names of the banks are: Lal Bagh Sahakari Bank Limited, The Co-operative Bank of Mehsana, The Harij Nagrik Bank and The National Co-operative Bank Limited.
Highest penalty imposed on these banks
RBI has imposed a penalty of Rs 5 lakh on Lal Bagh Co-operative Bank Limited. The bank failed to comply with RBI regulations relating to “Holding of Deposits by Primary (Urban) Co-operative Banks in Other Banks” and “Interest Rates on Co-operative Bank-Deposits”.
Dissatisfied with the response received after issuing show cause notice, the Central Bank has imposed penalty on this bank located in Vadodara, Gujarat. Apart from this, RBI has also imposed penalty on two other banks of Gujarat. A fine of Rs 3.50 lakh has been imposed on The Co-operative Bank of Mehsana for violating rules related to loans and advances.
At the same time, a fine of Rs 3 lakh has been imposed on The Harij Nagrik Bank for failing to follow the rules related to maintenance of cash balance, keeping deposits in other banks by primary (urban) co-operative banks and interest rate on deposits.
This bank of Maharashtra was fined Rs 1 lakh
RBI has imposed a fine of Rs 1 lakh on The National Co-operative Bank Limited of Mumbai. This bank did not comply with the rules regarding maintenance of deposits in other banks by primary (urban) co-operative banks.
The Reserve Bank has made it clear that this action has been taken on the basis of shortcomings. This will not have any impact on the transactions taking place between customers and banks.
