RBI Imposes monetary penalty: The Reserve Bank, while taking action on five co-operative banks, has imposed a fine of lakhs on them. Let us know the reason behind this.
RBI Penalties on Cooperative Banks: Reserve Bank of India keeps taking action against cooperative banks for not following the rules. Recently, the Central Bank has once again imposed a fine of lakhs on five co-operative banks. The banks on which action has been taken include the names of Manmandir Co-operative Bank, Sanmitra Co-operative Bank of Pune, Lakhwar Nagrik Co-operative Bank of Gujarat Mehsana, Contai Co-operative Bank of West Bengal and Sarvodaya Co-operative Bank of Mumbai.
How many lakhs fine was imposed on these banks?
The Reserve Bank has imposed a fine of Rs 3 lakh on Manmandir Co Operative Bank. This action has been taken on the bank due to ignoring the rules of KYC and not maintaining adequate information about the deposit accounts of the customers. Reserve Bank has made it mandatory for all banks to update KYC, in such a situation, RBI imposes fine on those banks which ignore the rules. RBI has imposed a fine of Rs 2 lakh on Lakhwar Nagrik Sahakari Bank of Mehsana, Gujarat for not providing correct information about loans and advances.
Contai Co-operative Bank has also been fined Rs 1 lakh for ignoring KYC norms. A fine of Rs 1 lakh has been imposed on Sarvodaya Sahakari Bank for arbitrarily collecting fine from customers for not maintaining minimum balance and also for failing to provide correct information about the bank deposit account. A penalty of Rs 1 lakh has been imposed on Pune’s Sanmitra Co-operative Bank for withholding information about deposit accounts.
RBI said this on action
While giving information about the action taken on different banks, the Reserve Bank of India has said that its objective is not at all to interfere in the functioning of the banks. This action has been taken due to ignoring the rules. Along with this, RBI informed that this will not affect the customers and all these banks will continue to work normally.
