New Delhi. The Reserve Bank of India (RBI) keeps an eye on the functioning of all the banks in the country. Whenever a bank ignores the RBI rules and does its own thing, the Central Bank can cancel its license.
In this context, RBI has canceled the license of Ananthasayanam Co-operative Bank, Thiruvananthapuram, Kerala.
Rules have been made for proper operation of banks
In case of violation of the rules made by RBI, strict action is taken against the accused bank. Rules have been made by RBI to ensure proper functioning of banks. On Thursday, strict action has been taken by RBI against many banks. Banks are often advised that they should not violate any rules otherwise a lot of trouble can happen.
In case of violation of rules, the license of Ananthashayanam Co-operative Bank Limited, Trivandrum (Kerala) has been canceled. Along with canceling the license of this bank, heavy fine has been imposed on four other banks. These banks have been fined for violating rules on many schemes including loans and advances.
Fine imposed on these banks
Along with canceling the bank’s license, fine has also been imposed on many banks. RBI has imposed a fine of Rs 1 lakh on Shree Warna Sahakari Bank Limited (Kolhapur, Maharashtra). HCBL Co-operative Bank Ltd (Lucknow, UP) fined Rs 11 lakh, The State Transport Co-operative Bank Ltd (Mumbai, Maharashtra) fined Rs 2 lakh and The Citizens Co-operative Bank Ltd (Jammu) fined Rs 6 lakh. A fine has been imposed.
