RBI imposes penalty on five cooperative banks for non compliance of its rules and regulations
Five cooperative banks have been penalised by the Reserve Bank of India for non-compliance of rules and regulations given
By : Legal Era
Update: 2022-09-05 15:45 GMT
RBI imposes penalty on five cooperative banks for non compliance of its rules and regulations
Five cooperative banks have been penalised by the Reserve Bank of India for non-compliance of rules and regulations given by the Central Bank. It has been clarified by the RBI hat these penalties are not part of any intention to pronounce the validity of any transactions or agreement entered by these banks with their customers.
The following banks have been penalised by RBI:
1. Karnataka State Cooperative Apex Bank, Bangalore are imposed with the penalty as high as ₹25 lakh for not complying with RBI's direction on Housing Finance.
2. Thane Bharat Sahakari Bank Limited, Thane, was penalized with a penalty of ₹15 lakh for not acting upon the RBI regulations on Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions.
3. Rani Laxmibai Urban Co-operative Bank, Jhansi, will pay a fine of ₹5 lakh to Reserve Bank as the bank failed to follow specific directions issued under the Supervisory Action Framework (SAF).
4. The Nicholson Co-operative Town Bank (No.8), Thanjavur District, Tamil Nadu violated directions under Exposure Norms and Statutory/Other Restrictions – UCBs and hence will pay a fine of ₹2 lakh.
5. The Urban Co-operative Bank, Rourkela will pay a relatively lighter fine of ₹10,000 for breaching the rules related to the Depositor Education and Awareness Fund.
"This role is (regulating cooperative banks), perhaps, the most unheralded aspect of our activities, yet it remains among the most critical. This includes ensuring credit availability to the productive sectors of the economy, establishing institutions designed to build the country's financial infrastructure, expanding access to affordable financial services and promoting financial education and literacy. This includes ensuring credit availability to the productive sectors of the economy, establishing institutions designed to build the country's financial infrastructure, expanding access to affordable financial services and promoting financial education and literacy," says the website of Reserve Bank of India.