RBI Action on Cooperative Banks: The Reserve Bank of India keeps an eye on the functioning of all the banks. Many times, RBI takes action on banks and imposes heavy fines for ignoring the rules. Recently, the Central Bank has once again taken action against five cooperative banks and imposed a fine of lakhs on them.
According to a report of Money Control, the banks on which action has been taken include The Kutch Mercantile Co-operative Bank based in Gujarat, The Thane District Central Co-operative Bank of Thane, Maharashtra, Bhabar Vibhag Nagrik Co-operative Bank, Progressive Mercantile Co-operative Bank. Bank and Shri Morbi Nagarik Cooperative Bank.
This much fine imposed on banks
The Reserve Bank of India has imposed a fine of lakhs on all these cooperative banks. This penalty has been imposed on banks for different reasons. According to the information given by the Reserve Bank, while taking this action on The Kutch Mercantile Co-operative Bank, the Central Bank has imposed a penalty of Rs 2 lakh.
This action has been taken against the bank for breaking the rule of fixed limit on transfer of money from one bank to another and not keeping the rules in mind while giving loan.
A fine of Rs 2 lakh has been imposed on The Thane District Central Co-operative Bank. Whereas RBI has imposed a fine of Rs 50,000 each on Shri Morbi Nagrik Cooperative Bank and Bhabar Vibhag Nagrik Cooperative Bank.
RBI has imposed the highest penalty on Progressive Mercantile Co-operative Bank. A penalty of Rs 7 lakh has been imposed on this bank. This action has been taken against the bank due to ignoring the rule of limit on money transfer between two banks. RBI has given information about this action on 22 December.
What will be the impact on customers?
While giving information about all these actions, the Reserve Bank of India has said that the objective of the Central Bank is not to interfere in the normal functioning of the banks. These actions have been taken due to banks ignoring the rules. Along with this, this fine is not going to have any impact on the customers. This action will not affect the operation of the bank in any way and the customers’ money is completely safe.
