The Reserve Bank of India has imposed a fine of Rs 12 lakh on co-operative banks located in different states of the country for non-compliance with the rules. These co-operative banks include banks in Madhya Pradesh, Maharashtra, West Bengal, Manipur, Gujarat, Haryana and Uttar Pradesh. RBI has imposed the maximum penalty of Rs 4 lakh on Nabapalli Co-operative Bank (West Bengal) for non-compliance of Prudential Inter Bank Exposure Limit and Prudential Inter Bank Counterparty Limit.
Along with this, a fine of Rs 25,000 was imposed by the RBI on Faiz Mercantile Co-operative Bank (Nashik) for giving loan to the relative of the director.
One lakh fine imposed on these banks: RBI for non-compliance with the rules District Co-operative Central Bank of Madhya Pradesh, Amravati Co-operative Bank of Maharashtra, Manipur Women’s Co-operative Bank of Manipur, United India Co-operative Bank of Uttar Pradesh, Bhagat Co-operative Bank of Haryana- Operative Bank and Navnirman Co-operative of Gujarat have been fined.
Penalty imposed for the following reasons: These co-operative banks have been imposed by the central bank to deal with various types of financial irregularities. According to the information, some banks were fined for non-deposit of unclaimed deposits in Depositor Education and Awareness Fund, late reporting of bank scams and disbursement of unsecured loans.
Fines imposed on these banks in February :Earlier also, in February, two Tamil Nadu and one co-operative bank in Jammu and Kashmir have been fined by RBI for financial irregularities. This includes The Big Kancheepuram Co-operative Town Bank Limited in Kancheepuram, Tamil Nadu and Chennai Central Co-operative Bank Limited located in Chennai, while the third name is Baramulla Central Co-operative Bank located in Baramulla, Jammu and Kashmir.
The Big Kancheepuram Co-operative Town Bank Ltd and Baramulla Central Co-operative Bank were fined Rs 2 lakh each and the third Chennai Central Co-operative Bank Ltd was fined Rs 1 lakh.