The Reserve Bank of India (RBI) has imposed a total fine of Rs 4 lakh on four co-operative banks for non-compliance with the rules. These banks include Andersul Urban Co-Operative Bank located in Andersul, Maharashtra, Mahesh Urban Co-operative Bank located in Ahmedpur, Maharashtra, Nanded Merchant Co-operative Bank located in Nanded, Maharashtra and District Co-operative Central Bank Maryadit located at Shahdol, Madhya Pradesh. is included.
According to the statements issued by the RBI, these fines have been imposed for violation of regulatory provisions and will not have any effect on the customers of banks. Customers can continue to do transactions and other banking operations with these banks as before.
RBI has imposed a fine of 1.50 lakh on Andersul Urban Co-operative Bank. On the other hand, Mahesh Urban Cooperative Bank has been fined Rs 1 lakh. Apart from this, a fine of Rs 50,000 has also been imposed on Nanded Merchant Cooperative Bank. RBI said that these three banks have been fined for not complying with the guidelines related to “Board of Directors and Exposure Norms”.
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Apart from this, a fine of Rs 1 lakh has been imposed on Shahdol’s District Co-operative Central Bank Limited itself. RBI has imposed a fine on this co-operative bank for violating the Banking Regulation Act 1949, the Depositor Education and Awareness Fund Scheme and rules related to KVC.
License canceled of this co-operative bank
Last month, the RBI ordered cancellation of the license of the People’s Co-Operative Bank Ltd in Uttar Pradesh. RBI had said that the bank will stop doing banking business on March 21, 2022, with effect from the closure of business. RBI said that the license was canceled because the bank did not have sufficient capital and earning potential.
Announcing the decision, RBI said that with its current financial position, the bank would be unable to make full payments to its existing depositors and public interest would be adversely affected if the bank is allowed to carry on with its banking business. .