RBI Action: RBI has imposed monetary fines on 5 banks. Two banks from Kashmir are included in this list. 3 NBFCs have surrendered their licenses. Let us know why the Reserve Bank of India has taken this step?
RBI Action: After Holi, a big action by the Reserve Bank of India has come to light. A monetary fine of lakhs has been imposed on five cooperative banks. The license of ten non-banking finance companies i.e. Certificate of Registration has been cancelled. Apart from this, three NBFCs have themselves surrendered their COR to RBI. The central bank has given this information through a press release on March 17.
A fine of Rs 1.50 lakh has been imposed on Janata Sahakari Bank Limited (Gondia Maharashtra). A fine of Rs 1 lakh each has been imposed on The Joginder Central Co-operative Bank Limited (Himachal Pradesh) and The Gurdaspur Central Co-operative Bank Limited (Punjab). RBI has imposed a fine of Rs 1 lakh on The Anantnag Central Co-operative Bank Limited located in Kashmir and Rs 5 lakh on The Baramulla Central Co-operative Bank Limited.
Why did RBI take strict action against banks?
Janta Sahakari Bank Ltd failed to transfer eligible unclaimed amount to the Deposit Education and Awareness Fund within the stipulated time. The Joginder Central Co-operative Bank Ltd sanctioned or renewed loans related to the director in violation of section 20 of the BR Act.
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The Anantnag Central Co-operative Bank Limited and The Baramulla Central Co-operative Bank Limited accepted some fresh deposits in violation of the guidelines issued by the RBI. The Gurdaspur Central Co-operative Bank Limited also violated the rules related to loans, sanctioning / renewing the loan related to the director. This action taken against the banks is based on deficiencies in compliance with the guidelines. It will not have any effect on the transactions or agreements between the bank and the customers.
These finance companies also got affected
RBI has canceled the CoR of 10 NBFCs located in Kolkata, West Bengal. Now these companies will not be allowed to do business as NBFCs. Cancellation order was issued to all the companies on 6 February 2025. The list includes Doyen Vyapar Private Limited Toilet, Gaza Fincorp Private Limited, Torrent Merchandise Private Limited, Lokpriya Trade and Agency Private Limited, Rani Sati Merchandise Private Limited, Mahima Commercial Co-operative Private Limited, Yogima Trading Private Limited, Vaishnavi Vyapar Private Limited, Ayse Credit Private Limited and Raikot Finance and Investment Private Limited.
Three companies have surrendered their licenses after exiting the banking financial institution business. The list includes Arvi Techno Investment Private Limited based in South Delhi, Panghat Finance Company Private Limited based in Rohtas, Bihar and Walton Street India Finance Private Limited based in Mumbai.
