RBI Penalty on Cooperative Banks: The Reserve Bank of India keeps an eye on the functioning of all the banks in the country. If any bank ignores the rules, RBI takes strict action and sometimes even imposes a fine of lakhs. Recently, the Reserve Bank has imposed a fine of lakhs of rupees on five cooperative banks due to similar negligence.
According to the information given by the Reserve Bank on January 4, 2024, the banks on which action has been taken include The Co-operative Urban Bank, Shri Bharat Co-operative Bank, The Limdi Urban Co-operative Bank, The Sankheda Nagrik Sahakari Bank and The Bhuj Commercial Co-operative Bank. The Central Bank has imposed a fine ranging from Rs 50,000 to Rs 5 lakh on all these banks.
How much fine was imposed on which bank
RBI has imposed a fine of Rs 5 lakh each on Shri Bharat Co Operative Bank and The Sankheda Nagrik Sahakari Bank. RBI has taken this action on The Sankheda Nagrik Sahakari Bank because the directors of the bank had become loan guarantors at many places, which is a violation of RBI rules. Along with this, the bank has also violated the rule of gross exposure limit between two banks. In such a situation, RBI has imposed this penalty on the bank.
The reason for imposing penalty on Shree Bharat Cooperative Bank is that the RBI investigation found that the bank has failed to follow the rules of Inter Bank Gross Exposure Limit. Along with this, the bank has also delayed paying interest on term deposit scheme. Apart from this, RBI has imposed a fine of Rs 1.50 lakh each on The Co-operative Urban Bank and The Bhuj Commercial Co-operative Bank. A fine of Rs 50,000 has been imposed on The Limdi Urban Co-operative Bank.
Will customers be affected
Reserve Bank has said that it has taken this action in case of violation of rules. RBI does not want to interfere in the functioning of banks in any way. This fine imposed by the Central Bank is not going to affect the general customers of the bank. Banks will continue to provide their services to customers normally.
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