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RBI imposed monetary penalty over these 5 banks

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The Reserve Bank of India has imposed penalty on five co-operative banks under Section 46 (4) (i), Section 56 and 47 A (1) (c) of the Banking Regulation Act 1949.


Bank News: Reserve Bank of India’s action (RBI Action) continues. The Central Bank has imposed a penalty (Monetary Penalty) on five co-operative banks for violating the rules. These banks are located in different states of the country. Penalty has been imposed on all banks under Section 46 (4) (i), Section 56 and 47 A (1) (c) of the Banking Regulation Act 1949. RBI has also issued a statement in this regard on Monday, December 18.

Penalty imposed on this bank of West Bengal

RBI has imposed a fine of Rs 1 lakh on Contai Co-operative Bank Limited, located in Purba Medinipur, West Bengal. This bank has failed to comply with the rules related to KYC. It also failed to establish a system for periodic review of the risk classification of accounts.

Fine imposed on this bank of Gujarat

The Reserve Bank has imposed a penalty of Rs 2 lakh on The Lakhvad Nagrik Sahakari Bank Limited, located in Mehsana district. The guarantors of the loan sanctioned by this bank were found to be relatives of the director. The bank also breached prudential inter-bank aggregate exposure limits as well as prudential inter-bank counterparty exposure limits.

Fine on three banks of Maharashtra

RBI has imposed fine on three banks of Maharashtra for non-compliance of rules. A penalty of Rs 1 lakh has been imposed on Sarvodaya Co-operative Bank Limited of Mumbai. This bank approved the new loan in violation of the instructions related to SAF. The Central Bank has imposed a fine of Rs 1 lakh on Pune’s Sanmitra Sahakari Bank Limited for violation of instructions related to maintenance of deposit accounts. A fine of Rs 3 lakh has been imposed on Vita’s The Manmandir Co-operative Bank Limited. This bank did not ensure periodic updation of KYC for high risk customers. Also failed to conduct periodic review of risk classification of accounts. Apart from this, he was also able to conduct annual review of inactive accounts.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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