The Reserve Bank of India (RBI) has informed on April 8 that it has imposed monetary penalty on five co-operative banks for violating the rules.
Reserve Bank Fine: The Reserve Bank of India (RBI) has informed on April 8 that it has imposed monetary penalty on five co-operative banks for violating the rules. RBI said, these banks are The Uttarakhand Grameen Bank, Nagar Sahkari Bank, The Raj Laxmi Mahila Urban Co-operative Bank, The Rohtak Central The Rohtak Central Co-operative Bank and The Parwanoo Urban Co-operative Bank.
How much penalty on which bank?
The Reserve Bank of India has sanctioned Rs 5 lakh each on The Uttarakhand Gramin Bank and The Raj Lakshmi Mahila Urban Co-operative Bank, Rs 4 lakh on The Municipal Co-operative Bank, Rs 2 lakh on The Rohtak Central Co-operative Bank and Rs 2 lakh on Parwanoo Urban Co-operative Bank. A fine of Rs 1 lakh has been imposed on the bank.
Why the fine?
It has been said in the release that the eligible unclaimed amount on Uttarakhand Gramin Bank was transferred late to the Deposit Education and Awareness Fund, due to which the penalty has been imposed on the bank. RBI said the Municipal Co-operative Bank was penalized because the charge for not classifying some loan accounts as non-performing as per IRAC norms was retained.
RBI imposed penalty on Raj Lakshmi Mahila Urban Cooperative Bank for non-compliance of specific instructions issued under SAF. The single exposure limit for new loans and advances has been maintained at 50 per cent of the applicable regulatory limit.
