RBI has also clarified that its instructions should not be seen as cancellation of banking licence. RBI said that it may consider amending the directions depending on the circumstances.
There are many groups and institutions at the local level for the transaction of money, but many types of scams keep happening in them. Because of this, people show trust in banks, but banks are also accused of irregularities. Due to these irregularities, these banks also get drowned. However, the Reserve Bank of India (RBI) keeps monitoring them. Now RBI has taken major action on four co-operative banks in the interest of customers. Keeping in mind the deteriorating financial condition of these four cooperative banks, RBI has imposed various restrictions. These four banks are Ramgarhia Co-Operative Bank of Delhi, Sahebrao Deshmukh Co-operative Bank of Mumbai, Sangli Co-operative Bank and Sharda Mahila Co-operative Bank of Karnataka.
According to reports, RBI has banned these four banks for 6 months. This restriction is effective from 8 July 2022. These restrictions on banks have been imposed under the Banking Regulation Act, 1949.
RBI issued a notice in this regard and said that these four banks cannot give any loan (loan or loan) without the prior approval of RBI. Apart from this, they cannot renew any loan. Under the instructions of RBI, the withdrawal limit by the depositors of these four cooperative banks has also been fixed.
According to RBI, a limit of Rs 50,000 per depositor has been set in the case of Ramgarhia Co-operative Bank and Sahebrao Deshmukh Co-operative Bank. At the same time, in the case of Sangli Co-operative Bank, this limit is Rs 45,000 per deposit. In the case of Sharda Mahila Co-Operative Bank, a depositor can withdraw a maximum of Rs.7,000.
RBI has also clarified that its instructions should not be seen as cancellation of banking licence. The RBI said that it may consider amending the instructions depending on the circumstances.
These banks have been fined just a few days ago
Earlier, the Reserve Bank has imposed a fine of Rs 1.05 crore on Kotak Mahindra and IndusInd Bank. The penalty was imposed for violation of certain norms of ‘Depositor Education and Awareness Fund Scheme, 2014’ and non-compliance of provisions relating to consumer protection and loans and advances in unauthorized electronic banking transactions. On the other hand, SEBI has imposed a penalty of Rs 1 crore on IndusInd Bank for non-compliance of ‘Know Your Customer’ (KYC) norms.
Apart from this, RBI had also imposed penalty on four cooperative sector banks – Navjeevan Co-operative Bank, Balangir District Central Co-operative Bank Ltd., Dhakuria Co-operative Bank Ltd. Kolkata and Palani Co-operative Urban Bank Ltd. Fines ranging from one lakh to two lakh rupees have been imposed on them.
