RBI has canceled the license of a co-operative bank. This bank was granted license on 19 December 1987. A penalty of Rs 11 lakh has been imposed on HCBL Co-operative Bank Limited (Lucknow, UP).
RBI Action: Reserve Bank of India has taken major action on Thursday. The Central Bank has canceled the license of Ananthashayanam Co-operative Bank Limited, Trivandrum (Kerala). At the same time, heavy fine has also been imposed on four banks for violating the rules. Let us tell you that often RBI takes action on the basis of shortcomings of banks while keeping in mind the safety and rules of the customers.
Bank’s license canceled, notice issued by RBI
Ananthashayanam Co-operative Bank Limited was granted license on 19 December 1987, which has been canceled by the RBI. The Central Bank has taken this action under Section 56 and Section 36A (2) read with the Banking Regulation Act 1949. The bank has now been issued a notice to close banking business.
However, the bank can still operate as a non-banking institution. Deposits by non-members are prohibited with immediate effect. Even after this, on the demand of the Reserve Bank, this bank will have to repay the unpaid and unclaimed amount of its non-members.
Fine imposed on these banks
RBI has imposed a penalty of Rs 1 lakh on Shree Warna Co-operative Bank Ltd (Kolhapur, Maharashtra) for failure to comply with directions relating to “Maintenance of Deposit Accounts – Primary Co-operative Banks”. A penalty of Rs 11 lakh has been imposed on HCBL Co-operative Bank Limited (Lucknow, UP) for violating rules related to loans and advances.
A fine of Rs 2 lakh has been imposed on The State Transport Co-operative Bank Limited (Mumbai, Maharashtra) for non-compliance of instructions relating to “Depositor Education and Awareness Fund Scheme, 2014”. A fine of Rs 6 lakh has been imposed on The Citizens Co-operative Bank Limited (Jammu). This action will not affect the transactions taking place between the bank and the customers.
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