RBI Cooperative Banks Penalties: The Reserve Bank of India (RBI) has imposed a total fine of Rs 5 lakh on three co-operative banks for violating certain directions issued by the central bank. Phaltan-based Yashwant Sahakari Bank Ltd., Mumbai-based Konkan Mercantile Co-Operative Bank Ltd. and Kolkata-based Samta Sahakari Vikas Bank Ltd. are the three banks that have been fined (RBI Cooperative). Banks Penalties) has been imposed.
Which banks have been fined by RBI?
RBI imposed a penalty of Rs 2 lakh each on Yeshwant Cooperative Bank and Konkan Mercantile Co-operative Bank for non-compliance of directions issued by the central bank on income recognition, asset classification, provisioning and other related matters. It also imposed a fine of Rs 1 lakh (RBI Cooperative Banks Penalties) on Samata Sahakari Vikas Bank for violating the directions issued on ‘Exposure Norms and Statutory’. RBI fined three co-operative banks under sections of the Banking Regulation Act, 1949 by the central bank.
RBI imposes fine of Rs 5 lakh on banks
In all cases, discrepancies were revealed in their scrutiny reports based on the financial position of the banks as on March 31, 2019. RBI had issued a notice to the banks advising them to show cause. After considering the bank’s replies and oral submissions during the personal hearing, the central bank came to the conclusion that the allegations were substantiated and warranted imposition of monetary penalty.
RBI is not doing any kind of transaction
In all cases, the RBI stated that the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by these banks with their respective customers.