RBI imposes Rs 1 crore on penalty this bank, will it affect the customers?

The Reserve Bank of India (RBI) said on Thursday that it has approved the cooperative sector cooperative Rabobank U.A. (Cooperatieve Rabobank UA) has been fined one crore rupees for lapses in regulatory compliance.

The Reserve Bank of India (RBI) said on Thursday that it has approved the cooperative sector cooperative Rabobank U.A. (Cooperatieve Rabobank UA) has been fined one crore rupees for lapses in regulatory compliance. RBI said in a statement that this penalty has been imposed for violation of certain provisions of the Banking Regulation Act, 1949 and instructions related to ‘Transfer of Reserve Funds’. Also Read: Good News to Jandhan Account Holders: You can check jandhan balance via missed call, check how details here-  

Violation of RBI’s instructions 

The central bank said that it had conducted a Supervisory Appraisal Statutory Investigation (ISE) inquiry into the bank’s financial position as on March 31, 2020. In which the company was found to have violated the provisions of the Banking Regulation Act and the directions issued by the RBI. RBI has also issued a show cause notice to the bank in this regard. Also Read: Alert! Jan Dhan Account: 6 crore Jan Dhan accounts inoperative as per finance ministry, check details

The statement said that after the response of the bank to the notice and the reply received in the personal hearing and subsequent additional information given by the bank, the Reserve Bank came to the conclusion that there was a violation of the rules and the monetary penalty on the bank was justified. Also Read: Good news: Now you will get ‘guaranteed return’ under NPS, know what is the preparation

In another statement,

The Reserve Bank said that Kolkata-based Village Financial Services has been fined Rs 5 lakh for non-compliance of certain provisions of Know Your Customer rules. The central bank also said that it has imposed a fine of Rs 13 lakh on Ahmednagar Merchant Co-Operative Bank, Rs 2 lakh on Mahila Vikas Co-operative Bank of Ahmedabad. Also Read: RBI Approved: This Bank got the biggest approval till now, there will be a direct impact on crores of customers

Will this affect the customers?

However, RBI said the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the two lenders with their customer.