RBI has imposed fine of lakhs on four banks. The highest monetary penalty has been imposed on Walchand Nagar Sahakari Bank. The amount of penalty is Rs 4 lakh.
RBI Action: Reserve Bank of India has imposed heavy penalty on four cooperative banks. The Central Bank has given this information on Monday, August 21. Two of these banks are from Maharashtra. There are two banks from Jammu and Kashmir and Gujarat. The central bank has taken this step in violation of the rules. The names of these banks are Shree Co-operative Bank Limited (Vadodara), Walchand Nagar Sahakari Bank (Maharashtra), Dahanu Road Janata Sahakari Bank Limited (Palghar, Maharashtra) and Devika Urban Co-operative Bank Limited (Udhampur, Jammu and Kashmir).
RBI imposed maximum penalty on this bank
The highest monetary penalty has been imposed on Walchand Nagar Sahakari Bank. The amount of penalty is Rs 4 lakh. The bank failed to comply with the KYC instructions issued by RBI. Devika Urban Cooperative Bank Limited is at number two in this list. The bank failed to comply with the instructions issued on sanction of loans and advances. Therefore, a fine of Rs 3 lakh has been imposed on it.
These banks were also fined
The Reserve Bank has imposed a fine of Rs 1 lakh on Dahanu Road Janata Bank. The bank is accused of non-compliance with the directions of the central bank under the Supervisory Action Framework (SAS). Apart from this, a fine of Rs 50,000 has been imposed on Shree Co-operative Bank Ltd for failure to comply with the directions issued on “loans and advances to directors, relatives, entities in which they are interested”. RBI has clarified in the report that this action will not affect the transactions between customers and banks.
