Reserve Bank of India has imposed penalty on five banks. Banks have been fined for not following specific instructions.
Reserve Bank of India (RBI) informed at the beginning of the week that it has imposed monetary penalty on five co-operative banks. These banks are The Uttarakhand Gramin Bank, Nagar Sahkari Bank, The Raj Laxmi Mahila Urban Co-operative Bank, The Rohtak Central Co-operative Bank. (The Rohtak Central Co-operative Bank) and The Parwanoo Urban Co-operative Bank.
How much penalty was imposed on which bank?
The Reserve Bank of India has sanctioned Rs 5 lakh each on The Uttarakhand Gramin Bank and The Raj Laxmi Mahila Urban Co-operative Bank, Rs 4 lakh on The Municipal Co-operative Bank, Rs 2 lakh on The Rohtak Central Co-operative Bank and Rs 2 lakh on The Parwanoo Urban Co-operative Bank. But a penalty of Rs 1 lakh has been imposed.
Why did the Reserve Bank impose penalty?
In the release issued by the bank, it has been told that the eligible unclaimed amount on Uttarakhand Gramin Bank was transferred late to the Deposit Education and Awareness Fund, due to which the penalty has been imposed on the bank. RBI said that penalty has been imposed on Municipal Cooperative Bank. As per IRAC norms, charges for not classifying some loan accounts as non-performing were retained.
RBI imposed penalty on Raj Lakshmi Mahila Urban Cooperative Bank for non-compliance of specific instructions issued under SAF. The single exposure limit for new loans and advances has been maintained at 50 per cent of the applicable regulatory limit.
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