|
Category :
Economy
Headline :
RBI imposes monetary penalty on 5 co-operative banks for rule violation
Date:
22/03/2024 16:54
On March 21, the Reserve Bank of India (RBI) announced that it has levied monetary penalties on five co-operative banks for regulatory breaches.
The banks facing penalties are Pragati Mahila Nagrik Sahakari Bank, Janata Co-operative Bank, Jila Sahakari Kendriya Bank, Karad Urban Co-operative Bank, and The Kalupur Commercial Co-operative Bank.
As per the RBI's press release, The Kalupur Commercial Co-operative Bank has been fined Rs 26.60 lakh, Karad Urban Co-operative Bank Rs 13.30 lakh, Janata Co-operative Bank Rs 5 lakh, Pragati Mahila Nagrik Sahakari Bank Rs 1 lakh, and Jila Sahakari Kendriya Bank Rs 75,000.
The penalty on The Kalupur Commercial Co-operative Bank was due to its failure to transfer eligible amounts to the Depositor Education and Awareness Fund within the stipulated timeframe and for renewing two loans to a company in which a bank director's relative, a significant shareholder in the company, had an interest.
Karad Urban Co-operative Bank faced penalties for not adhering to certain RBI directives related to 'Interest Rate on Deposits'.
Additionally, Janata Co-operative Bank was penalized for exceeding the prescribed regulatory limit on gold loans under the bullet repayment scheme and for granting loans to its nominal members beyond the specified regulatory limit.
|