Reserve Bank of India: RBI has imposed a fine of Rs 43.30 lakh on Rajkot Nagarik Cooperative Bank. The Central Bank has imposed this penalty for not following the instructions regarding ban on loans and advances to the directors and their relatives and other things.
RBI Imposes Penalty: Recently, the Reserve Bank of India (RBI) had imposed a penalty of Rs 2 crore on the largest public sector bank SBI. This penalty was imposed for not following the rules. At that time RBI had also imposed penalty on Canara Bank and Union Bank. But now RBI has imposed a fine of only Rs 2 lakh on a co-operative bank.
60.3 lakh fine on five cooperative banks
In the latest development, RBI has imposed a fine of Rs 60.3 lakh on five cooperative banks for not following the regulatory norms. This time RBI has imposed a fine of Rs 43.30 lakh on Rajkot Nagarik Sahakari Bank. The Central Bank has imposed this penalty for not following the instructions regarding ban on loans and advances to directors and their relatives and other things.
Bank with lowest penalty
Apart from this, RBI has imposed a fine of Rs 5 lakh each on The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Co-operative Bank (Lucknow) and District Co-operative Bank, Garhwal (Kotdwar, Uttarakhand). The lowest penalty has been imposed on District Co-operative Bank, Dehradun and this amount is Rs 2 lakh. The Reserve Bank said that in each case, the penalty has been imposed on the basis of lapses in regulatory compliance and is not intended to affect the validity of any transaction entered into by the banks with their respective customers.
What will be the impact on customers?
On this action taken by RBI, it was made clear that this penalty has been imposed on cooperative banks due to lapses in regulatory compliance. It has nothing to do with the transaction or agreement between the bank and the customers. From time to time, RBI keeps imposing penalties on banks or NBFCs for not following banking rules. The customers have nothing to do with the fine imposed on the bank. The bank’s customer related work continues as before.
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