Banks that have been fined include National Urban Co-operative Bank, Nagrik Sahakari Bank Maryadit, Ambernath Jaihind Co-operative Bank, Dhule and Nandurbar District Government Nokeranchi Sahakari Bank, The Bantra Co-operative Bank Ltd and Suvarnayug Sahakari Bank
The Reserve Bank of India (RBI) has imposed fine on 6 co-operative banks for not following the rules. The banks that have been fined include National Urban Co-operative Bank, Nagrik Sahakari Bank Maryadit, Ambernath Jaihind Co-operative Bank, Dhule and Nandurbar District Government Nokeranchi Sahakari Bank, The Bantra Co-operative Bank Ltd and Suvarnayug Sahakari Bank. A fine of up to Rs 10 lakh has been imposed on these banks.
How much fine on whom?
A fine of Rs 10 lakh has been imposed on National Urban Co-operative Bank, Rs 4.5 lakh on Nagarik Sahakari Bank Maryadit and Rs 2 lakh on Ambernath Jaihind Sahakari Bank. Besides, Suvarnayug Sahakari Bank and Dhule and Nandurbar District Government Nokeranchi Sahakari Bank have been fined Rs one lakh each. Lastly, a fine of Rs 30,000 has been imposed on Bantra Co-operative Bank.
What is the reason for the fine?
According to the RBI, the National Urban Co-operative Bank has not followed the rules related to the approval of new loans and advances. Under the Supervisory Action Framework (SAF), RBI has directed to stop sanction/disbursement of such loans and advances.
Suvarnayuga Sahakari Bank has been fined because it was charging fixed penalty instead of proportionate to the extent of shortfall for non-maintenance of minimum balance in savings accounts without informing the affected.
Further, the Bantra Co-operative Bank has flouted the norms of inter-bank, gross as well as counterparty exposure limit. Further, the bank failed to periodically review the risk categorization of its accounts. In addition, the RBI has imposed penalties on other banks for non-compliance with other provisions of the Banking Regulation Act.
