The Reserve Bank of India (RBI) has taken major action against eight banks for violating the rules. In this case, eight cooperative banks have been fined by the RBI. The highest fine of Rs 40 lakh has been imposed on Mehsana Urban Co-operative Bank of Gujarat.
Penalty imposed for not following the rules
According to the Reserve Bank, the Mehsana Urban Co-operative Bank has been fined for non-compliance of certain rules of the Reserve Bank of India (Interest Rate on Co-operative Bank Deposits) Directions, 2016. The central bank said in a statement on Monday that a fine of Rs 7 lakh has been imposed on Indapur Urban Cooperative Bank, Indapur, Maharashtra for violation of certain provisions related to loan norms.
25 lakh fine on Chhattisgarh bank
At the same time, Maharashtra’s Varud Urban Co-operative Bank, Varud, Madhya Pradesh’s District Co-operative Central Bank Maryadit, Chhindwara and Maharashtra’s Yavatmal Urban Co-operative Bank, Yavatmal were fined for violating the Know Your Customer (KYC) rules. Is. A fine of 25 lakhs has been imposed on Chhattisgarh State Co-operative Bank Maryadit, Raipur for non-compliance of KYC rules. Apart from this, a co-operative bank of Guna and Goa State Co-operative Bank of Panaji have also been fined.
Earlier, in view of the deteriorating financial condition of three co-operative banks, RBI had imposed many restrictions including withdrawal of money on them. In a statement issued by the RBI, it was said that due to the ban on Jayprakash Narayan Nagari Sahakari Bank, Basmatnagar, account holders will not be able to withdraw money from their account.
Apart from this, account holders of The Karmala Urban Co-operative Bank, Solapur can also withdraw only Rs 10,000 from their accounts. RBI has also banned Durga Co-operative Urban Bank, Vijayawada. Its customers can withdraw up to Rs 1.5 lakh from their deposits.