The Reserve Bank of India has imposed a fine of crores on four cooperative banks of the country. A fine of Rs 1.12 crore has been imposed on Mahesh Co-operative and Rs 62.50 lakh on Mercantile Co-operative Bank.
The Reserve Bank of India on Tuesday imposed a fine of Rs 112.50 lakh on Hyderabad-based Andhra Pradesh Mahesh Co-operative Urban Bank and four cooperative banks for violating regulatory norms. A fine of Rs 62.50 lakh has been imposed on the bank, Rs 37.50 lakh on SVC Co-operative Bank of Mumbai and Rs 25 lakh on Saraswat Co-operative Bank of Mumbai itself.
According to the central bank, this penalty has been imposed on Andhra Pradesh Mahesh Co-operative Urban Bank for non-compliance of RBI’s instructions related to ‘Interest Rate on Deposits’ and ‘Know Your Customer’. Whereas Ahmedabad Mercantile Co-operative Bank has been penalized for violating norms in the master directive on ‘rate of interest on deposits’. The RBI said that it has imposed a penalty on SVC Co-operative Bank for non-compliance with the directions of ‘Interest Rate on Deposits’ and ‘Frauds Monitoring and Reporting Mechanism’.
Penalties for deficiencies in regulatory compliance
Saraswat Co-Operative Bank has been penalized for non-compliance of the instructions on ‘Rate of interest on deposits’ and ‘Maintenance of deposit accounts’. Regarding the penalty imposed on banks, RBI said that this penalty has been imposed on the basis of deficiencies in regulatory compliance.
Last week also RBI took action
Last week also, the Reserve Bank of India (RBI) took major action on co-operative banks. The RBI had imposed a fine of Rs 23 lakh on three co-operative banks, including Mogaveera Co-operative Bank Limited, Mumbai for violating various rules.
12 lakh fine on Mogaveera Co-operative
Rs 12 lakh on Mogavira Co-operative Bank Ltd., Rs 10 lakh on Indapur Urban Co-operative Bank and Rs 1 lakh on The Baramati Sahakari Bank Ltd. of Baramati. imposed on.
