The RBI has imposed a fine of Rs 23 lakh on three co-operative banks, including Mumbai’s Mogavira Co-Operative Bank Limited, for violating various rules.
Reserve Bank of India
The Reserve Bank of India (RBI) has once again taken major action against co-operative banks. RBI imposed a fine of Rs 23 lakh on three cooperative banks, including Mogaveera Co-operative Bank Limited, Mumbai for violating various rules.
Mogavira Co-Operative Bank Ltd. fined Rs.12 lakh, Indapur Urban Co-operative Bank Rs.10 lakh and Baramati’s The Baramati Sahakari Bank Ltd. Rs.1 lakh fine imposed on.
This was revealed in the inspection report
Regarding Mogavira Co-Operative Bank, the central bank said that on the basis of the financial position of the bank as on March 31, 2019, its inspection report disclosed that the bank had deposited the unclaimed deposits in the Depositor Education and Awareness (DEA) Fund. Did not transfer properly and also did not do annual review of dormant accounts. The inspection also found that there was no system for periodic review of risk classification of accounts in the bank.
RBI said in respect of Indapur Co-operative Bank that its inspection report based on the financial position of the bank as on March 31, 2019 disclosed that it did not adhere to the unified limit on unsecured advances and risk classification of accounts with it There was no system of periodic review. Also, the bank did not have a robust system to generate alerts in case the transactions are inconsistent in terms of risk categorization of customers.
action taken before
Let us tell you that earlier, RBI had imposed a fine of Rs 2 lakh on Dhrangadhra People’s Co-Op Bank based in Surendranagar, Gujarat for non-compliance of certain norms. The RBI said that the placement of deposits along with other Primary (Urban) Co-operative Banks (UCBs) and the Depositor Education and Awareness Fund Scheme 2014 were fined for non-compliance of RBI directions.
At the same time, the central bank imposed a total fine of Rs 6 crore on Bank of India (BOI) and Punjab National Bank (PNB) for violation of norms. One of these violations pertains to the rules for classification and reporting of fraud. Bank of India was fined Rs 4 crore and Punjab National Bank was fined Rs 2 crore.
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