Action Taken by RBI Against Four Co-operative Banks
The Reserve Bank of India (RBI) has recently taken significant action against four co-operative banks located in Gujarat and Maharashtra. This announcement was made in a press release issued on Monday, December 16. The Central Bank has also sent out orders to all the banks involved, emphasizing the importance of adhering to regulatory guidelines. These actions reflect the RBI’s ongoing commitment to maintaining financial integrity within the banking sector.
Details of the Monetary Penalties Imposed
In terms of penalties, Tarapur Co-operative Urban Bank Limited in Anand, Gujarat, has been fined Rs 1 lakh. Vysya Sahakari Bank Limited in Mumbai has received a larger penalty of Rs 5.96 lakh. SBPP Co-operative Bank Limited in Kila Pardi, Valsad, has faced a hefty fine of Rs 15 lakh, while Bhadran People’s Co-operative Bank Limited, also in Anand, has been fined Rs 1 lakh. The reasons behind these penalties include failures to comply with prudential limits, mishandling interest-free deposits, and not classifying certain loan accounts properly.
No Impact on Customers
Importantly, the RBI has assured customers that these penalties will not impact their transactions or agreements with the banks. An inspection conducted in March 2023 revealed various compliance shortcomings, leading to show-cause notices being issued. After careful investigation and review of the banks’ responses, the RBI decided on these monetary penalties. Customers can rest assured that their banking operations will continue as usual despite these regulatory actions.
