RBI Penalty on Banks: The Reserve Bank of India (RBI) has taken major action against eight banks for violating the rules. In this case, the RBI has imposed a penalty on eight cooperative banks. The maximum fine of Rs 40 lakh has been imposed on Mehsana Urban Co-operative Bank of Gujarat.
The penalty imposed for not following the rules
According to the Reserve Bank, the Mehsana Urban Co-operative Bank has been fined for non-compliance with certain rules of the Reserve Bank of India (Interest Rate on Co-operative Bank Deposits) Directions, 2016. The central bank said in a statement on Monday that a penalty of Rs 7 lakh has been imposed on Indapur Urban Co-operative Bank, Indapur, Maharashtra for violation of certain provisions relating to lending norms.
25 lakh fine on Chhattisgarh Bank
Varud Urban Co-operative Bank of Maharashtra, Varud, District Sahakari Central Bank Maryadit of Madhya Pradesh, Chhindwara, and Yavatmal Urban Co-operative Bank of Maharashtra, Yavatmal has been fined for violating Know Your Customer (KYC) norms. A 25 lakh fine has been imposed on Chhattisgarh State Cooperative Bank Maryadit, Raipur for non-compliance with KYC rules. A cooperative bank in Guna and the Goa State Cooperative Bank in Panaji were also penalized in addition to this.
Earlier, in view of the deteriorating financial condition of the three cooperative banks, RBI had imposed several restrictions on them including withdrawal of money. In a statement issued by the RBI, it was said that due to the ban on Jaiprakash Narayan Nagari Sahakari Bank, Basmatnagar, account holders will not be able to withdraw money from their accounts.
Moreover, the account holders of The Karmala Urban Co-operative Bank, Solapur can also withdraw only Rs.10,000 from their accounts. Durga Cooperative Urban Bank, Vijayawada, has also been prohibited by RBI. From their deposits, consumers can withdraw up to Rs 1.5 lakh.
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