RBI Action: The Reserve Bank of India has fined four cooperative banks for violating norms. The Central Bank has given this information on 7th August i.e. today. RBI has shown strictness on two banks of Maharashtra.
The names of these banks are Shree Bhatia Co-operative Bank Limited (Mumbai) and VITA Urban Co-operative Bank Limited (VITA). Apart from this, penalty has been imposed on Mirojam Urban Co-operative Development Bank Limited of Aizawl and Shree Vinayak Sahakari Bank Limited of Ahmedabad, Gujarat.
How much was the monetary penalty?
Shree Vinayak Sahakari Bank failed to comply with the directions issued by RBI on “Placing of deposits with other banks by Primary (Urban) Co-operative Banks”. For which the Central Bank has imposed a fine of Rs 1.5 lakh. The Shree Bhatia Co-operative Bank Ltd has been fined Rs 1 lakh for violating SAF and KYC guidelines.
For similar reasons, RBI has imposed a penalty of Rs 20,000 on Mirojam Urban Co-operative Development Bank Ltd. A penalty of Rs 1.5 lakh has been imposed on Vita Urban Co-operative Bank Ltd for violating the directions on “Maintenance of Deposit Accounts”.
Customers will not be affected
The Reserve Bank has clarified that this step has been taken in view of the shortcomings. This will not affect the transactions between customers and banks. Show cause notices were also issued to all the banks. In the absence of satisfactory reply, RBI decided to impose monetary penalty.
