Reserve Bank of India has imposed fine on 4 co-operative banks for different reasons. A fine of Rs 5 lakh each has been imposed on two banks.
RBI Action: Reserve Bank of India keeps taking action against banks in case of violation of rules. The Central Bank has now imposed a heavy penalty on four cooperative banks. RBI has given this information on Thursday.
Rs 2 lakh on The Baramati Co-operative Bank (Pune, Maharashtra), Rs 2 lakh on The Becharaji Nagrik Co-operative Bank (Gujarat), Rs 5 lakh on Waghoria Urban Co-operative Bank (Vadodara, Gujarat) and Rs 5 lakh on Viramgam Mercantile Co-operative Bank (Ahmedabad, Gujarat) has been fined Rs 5 lakh.
This is the reason
The Baramati Cooperative Bank failed to comply with RBI instructions relating to “Maintenance of Deposit Accounts”. The Becharaji Nagrik Sahakari Bank did not comply with the instructions on “Holding of Deposits in Other Banks by Primary (Urban) Co-operative Banks (USBs)”. Waghoria Urban Co-operative failed to comply with the instructions relating to loan-advance, deposit placement with other banks, USB and SAF. Reserve Bank had issued show cause notice to all the banks. It was only after their response that the decision to impose monetary penalty was taken.
What will happen to customers?
RBI has made it clear that action has been taken against these four banks in view of the lapses. This will not affect the transactions taking place between customers and banks.
