The Reserve Bank of India (RBI) has established eight co-operative banks in Madhya Pradesh, Maharashtra, West Bengal, Manipur, Gujarat, Haryana and Uttar Pradesh (Madhya Pradesh, Maharashtra, West Bengal, Manipur, Gujarat, Haryana and Uttar Pradesh). has imposed a fine of more than Rs.12 lakh.
Nabapalli Cooperative Bank, Barasat, West Bengal has been fined the highest i.e. Rs 4 lakh by RBI. These fines have been imposed for non-compliance with Prudential Inter-Bank (GROSS) exposure limits and failure to comply with Prudential Inter-Bank Counterparty Limits.
On the other hand, Faiz Mercantile Co-operative Bank, Nashik, Maharashtra has been imposed the lowest fine of Rs 25,000 for giving loan to the relative of a director in violation of rules.
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Other banks that have been fined by RBI include District Co-operative Kendriya Bank Maryadit in Madhya Pradesh, Amravati Merchants’ Co-operative Bank in Maharashtra, Manipur Mahila in Manipur Sahakari Bank (Manipur Women’s Co-operative Bank), United India Co-operative Bank in Uttar Pradesh, Baghat Urban Co-operative Bank in Haryana and Navnirman Sahakari Bank in Gujarat ( Navnirman Co-operative Bank). Most of these banks have been fined Rs 1 lakh.
The violations committed by these banks include non-transfer of eligible unclaimed deposits to the Depositor Education and Awareness Fund, delay in reporting frauds and sanctioning of unsecured loans.
Earlier, taking a big action, RBI took action against fintech firm Paytm for sharing data with Chinese companies. According to a Bloomberg report, the RBI in a March 11 order barred Paytm Payments Bank from adding new customers as it allowed its data to go to foreign servers, which are India’s data. There was a violation of localization rules. Apart from this, he also did not verify the KYC data of his customers properly.
According to the report, the RBI in its annual investigation found that the company’s servers were sharing data with certain firms based in China, which indirectly have some stake in Paytm Payments Bank.
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