To listen click here
Mumbai, Oct 20: The Reserve Bank of India (RBI) has imposed a monetary penalty on five co-operative banks in Gujarat for violating regulatory norms, including giving loans to their own directors, which is not allowed.
Surat National Co-operative Bank Ltd., Surat, Gujarat fined Rs 6.00 lakh for violation of RBI directions on ‘Co-operative Banks – Interest Rates on Deposits’ and ‘Customer Protection – Limited Liability of Customers of Co-operative Banks’ Is. ‘Unauthorized Electronic Banking Transactions’.
People’s Co-operative Bank Ltd, Dholka, Gujarat received a penalty of Rs 3.00 lakh for non-compliance with RBI guidelines on ‘Loans and advances to directors, relatives and firms/entities in which they are interested’ and ‘Co-operatives’. Bank – Interest rates on deposits’.
Vadnagar Nagrik Sahakari Bank Limited, Vadnagar, Gujarat was fined Rs 2.00 lakh for violating RBI directions on ‘loans and advances to directors, relatives and firms/entities in which they are interested’.
Mahila Sahakari Nagrik Bank Limited, Bharuch, Gujarat, received a penalty of Rs 2.00 lakh for not following RBI guidelines on ‘Holding deposits by Primary (Urban) Co-operative Banks (UCBs) with other banks’ and ‘Address’. Customer (KYC).’
Chhapi Nagarik Sahakari Bank Limited, Banaskantha, Gujarat has been fined Rs 1.00 lakh for non-compliance with RBI directions on ‘Loans and advances to directors, relatives and firms/entities in which they are interested’.
RBI clarified that these actions were taken due to deficiencies in regulatory compliance and are not intended to adjudicate on the validity of any transaction or agreement entered into by banks with their customers.