RBI penalizes co-op banks: RBI has imposed heavy fines on 8 co-operative banks for violation of many rules. At the same time, a total fine of Rs 2.33 crore has been imposed on an NBFC.
RBI penalises co-op banks: The Reserve Bank of India (RBI) has taken major action against 8 co-operative banks for violation of several rules. The central bank has imposed a fine on these co-operative banks. A fine of Rs 40 lakh has been imposed on Mehsana Urban Co-operative Bank of Gujarat. According to RBI, the Mehsana Urban Co-operative Bank has been fined for non-compliance of certain provisions of the Reserve Bank of India (Co-operative Banks – Rate of Interest on Deposits) Directions, 2016.
Heavy fine imposed on these banks
The central bank said in a statement that a fine of Rs 7 lakh has been imposed on Indapur Urban Cooperative Bank, Indapur, Maharashtra for violation of certain provisions related to debt norms. At the same time, Warud Urban Co-operative Bank of Maharashtra, District Co-operative Central Bank Maryadit of Warud, Madhya Pradesh, Chhindwara and Yavatmal Urban Co-operative Bank of Maharashtra (Yavatmal Urban) Co-operative Bank, Yavatmal has been fined for violation of Know Your Customer (KYC) norms.
Penalty for violation of KYC norms
Apart from this, a fine of Rs 25 lakh has been imposed on Chhattisgarh State Cooperative Bank Maryadit, Raipur for non-compliance of certain KYC provisions. Apart from this, a co-operative bank Garha Co-operative Bank Limited in Guna and Goa State Co-operative Bank of Panaji have also been fined.
Spandana Sphoorty Financial
A penalty of Rs 2.33 crore has been imposed for non-compliance of certain provisions of the NBFCs- Systemically Important Non-Deposit taking Companies and Deposit Taking Companies (Reserve Bank) Directions, 2016.
The RBI decided to impose the penalty after conducting an inspection, which revealed that the company failed to comply with the pricing of credit guidelines for non-banking finance companies and micro finance institutions.
