The Reserve Bank of India has penalized four banks with varying amounts of fine. These banks are namely Vasai Vikas Sahakari Bank, Rajarambapu Sahakari Bank, Nagpur Nagarik Sahakari Bank and Lunawada Peoples Co-operative Bank.
RBI imposed a monetary penalty of Rs 20.00 lakh on Vasai Vikas Sahakari Bank Ltd., Vasai, Maharashtra. The UCB was found guilty of non-compliance with RBI directions on ‘Frauds monitoring and reporting mechanism’.
Sangli based Rajarambapu Sahakari Bank was fined Rs 28.00 lakh (for non-compliance with RBI directions on ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’ and on ‘Interest Rate on Deposits’.
RBI imposed a monetary penalty of Rs 18.50 lakh on Nagpur Nagarik Sahakari Bank Ltd., Nagpur for non-compliance with RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
The Lunawada Peoples Co-operative Bank Ltd., Mahisagar (Gujarat) was penalized Rs 50K for contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’ and ‘Loans and advances to directors etc – directors as surety/guarantors – Clarification’.