Reserve Bank of India: Fine is imposed by the Reserve Bank for not following the rules. If we look at the developments of the last 15 days, RBI has imposed penalty on 19 banks including SBI and Indian Bank. Not only this, during this period, customers of Ahmedabad-based Color Merchants Co-operative Bank were allowed to withdraw a maximum of Rs 50,000. That means, customers of this bank will not be able to withdraw more than Rs 50 thousand from their account.
In the latest development, on October 11, RBI has imposed a fine of Rs 5.39 crore on Paytm Payments Bank Limited for not following KYC rules. The Reserve Bank has also found non-compliance with certain provisions related to RBI guidelines for licensing of payments banks, cyber security framework in banks and securing mobile banking applications including UPI environment.
Apart from this, on October 11 itself, RBI has also imposed penalty on three co-operative banks and one NBFC for lapses in regulatory compliance. These cooperative banks are Annasaheb Magar Sahakari Bank Limited, The Jawahar Urban Co-operative Bank Limited, Janata Urban Co-operative Bank Limited and Finquest Financial Solutions Private Limited.
On October 9, RBI sanctioned Rs 13 lakh on SBPP Co-operative Bank Limited, Kila Pardi, Rs 6 lakh on Sahyadri Co-operative Bank Limited, Mumbai, Rs 1 lakh on Rahimatpur Co-operative Bank Limited, Rahimatpur, Rs 1 lakh on The Gadhinglaj Urban Co-operative Bank Limited, Gadhinglaj. A fine of Rs 3 lakh was imposed and a fine of Rs 4.50 lakh was imposed on The Kalyan Janata Sahakari Bank Limited, Kalyan.
On October 3, the central bank also imposed monetary penalty on The Sarvodaya Co-operative Bank, Dhanera Mercantile Co-operative Bank, The Janata Co-operative Bank and Maninagar Co-operative Bank. A fine of Rs 1 lakh was imposed on Maninagar Co-operative Bank, Rs 3.50 lakh on Janata Co-operative Bank, Rs 6.50 lakh on Dhanera Mercantile Co-operative Bank and Rs 6 lakh on The Jawahar Urban Co-operative Bank.
On September 28, RBI imposed penalty on three cooperative banks Saraswat Cooperative Bank Limited, Basin Catholic Cooperative Bank Limited and Rajkot Nagarik Cooperative Bank Limited. A monetary fine of Rs 23 lakh was imposed on Saraswat Co-operative Bank Limited. Whereas a monetary fine of Rs 25 lakh was imposed on Basin Catholic Co-operative Bank Limited and Rs 13 lakh was imposed on Rajkot Nagarik Co-operative Bank Limited.
On October 26, RBI had canceled the banking license of Nashik District Girna Co-operative Bank Limited. The reason for canceling the license was said to be the bank not having sufficient capital and earning potential. Earlier, RBI also licensed ‘The Kapol Co-operative Bank Limited’ of Mumbai.
On September 25, RBI had imposed penalty on three big public sector banks. The central bank has imposed a fine of Rs 1.3 crore on SBI and Rs 1.62 crore on Indian Bank. Apart from this, RBI also imposed penalty on Punjab and Sindh Bank. On the same day, a fine of Rs 8.80 lakh was also imposed on Fedbank Financial Services Limited.
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