RBI has taken strict action against 4 banks for violating the rules. Heavy fines have been imposed on the banks.
RBI Action: In view of the lack of regulatory compliance, the Reserve Bank of India has taken strict action against four banks. A heavy monetary penalty has been imposed on cooperative banks located in Andhra Pradesh, Maharashtra, Karnataka and Bihar. RBI has given this information on Thursday. Let us know what are the names of these banks and why has RBI taken this step?
Penalty imposed on this bank of Andhra Pradesh
A monetary penalty of Rs 50,000 has been imposed on District Cooperative Central Bank Limited, located in Vijayanagaram, Andhra Pradesh. This bank delayed in reporting the fraud to the National Bank for Agriculture and Rural Development (NABARD). After the allegation was proved, RBI decided to impose monetary penalty.
Fine imposed on this bank of Bihar
By an order issued on July 11, RBI has imposed a penalty of Rs 1 lakh on Vaishali District Cooperative Central Bank Limited, Bihar. The investigation found that the bank failed to establish a system of periodic review of risk classification of accounts.
RBI’s whip on this bank of Maharashtra
By an order issued on July 8, RBI has imposed a penalty of Rs 2.5 lakh on Chandrapura District Central Cooperative Bank Limited, Maharashtra. During the investigation, it was found that the bank had sanctioned loans to its directors. After which RBI took strict action.
This bank of Karnataka included in the list
By an order issued on July 15, 2024, Sri Harihareshwar Urban Cooperative Bank Limited, Harihar, Karnataka has been fined Rs 50,000 for non-compliance with the instructions issued on “Exposure norms and statutory/other restrictions on UCBs”. This bank has violated the prudential inter-bank gross and counterparty exposure limits.
