RBI penalizes four cooperative banks for non-compliance with norms
RBI penalizes four cooperative banks for non-compliance with norms
The financial institutions have been ordered to pay Rs.44 lakh
The Reserve Bank of India (RBI) has imposed penalties on four cooperative banks.
Chennai-based Tamil Nadu State Apex Co-operative Bank has been directed to pay Rs.16 lakh for contravention of various norms. It also failed to report fraud to National Bank for Agriculture and Rural Development (NABARD) within the prescribed timeline.
Bombay Mercantile Co-operative Bank is to pay Rs.13 lakh for failing to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed period and transferred the same with delay.
The central bank has fined Rs.13 lakh on Janata Sahakari Bank, Pune, for non-compliance with directions on 'Interest Rate on Deposits'.
Also, a monetary penalty of Rs.2 lakh has been slapped on Baran Nagrik Sahkari Bank, Baran, Rajasthan for contravention of certain norms.
The RBI maintained that the penalties were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
