RBI imposed penalty on three cooperative banks, action for not following the rules
RBI has imposed penalty on three cooperative banks including The Nashik Merchants Cooperative Bank for lapse in regulatory compliance.
RBI has imposed penalty on three cooperative banks including The Nashik Merchants Cooperative Bank for lapse in regulatory compliance. The central bank said that a fine of Rs 50 lakh has been imposed on The Nashik Merchants Cooperative Bank.
reserve Bank of India (RBI) On Monday, three cooperative banks including The Nashik Merchants Cooperative Bank were fined for lapse in regulatory compliance. (penalty) have put. The Reserve Bank said in a statement that Fraud (Fraud) The instructions of NABARD (National Bank for Agriculture and Rural Development) issued in respect of information and monitoring of (Directions) Mumbai-based Maharashtra State Cooperative Bank has been fined Rs 37.50 lakh for non-compliance.
50 lakh fine imposed on this cooperative bank
In another release, the central bank said that the Nashik Merchants Co-operative Bank has been fined Rs 50 lakh for non-compliance with RBI’s directions regarding placement of deposits with other banks and interest on deposits.
National Central Cooperative Bank Limited, Bettiah, Bihar has been fined Rs 2 lakh for violating the provisions of Depositor Education and Awareness Fund and Know Your Customer Rules.
The central bank has clarified that this penalty has been imposed for lapses in regulatory compliance.
RBI also took action on these banks
Earlier, RBI had imposed a penalty of Rs 5.72 crore on Federal Bank and Rs 70 lakh on Bank of India for lack of regulatory compliance. RBI had informed about this in a statement on Friday. The RBI had imposed a penalty of Rs 70 lakh on Bank of India for non-compliance of directions in respect of certain provisions of its Know Your Employee norms and regulatory compliance, the statement said.
In a separate statement, RBI had said about Federal Bank that the bank had failed to ascertain whether any incentive (cash or non-cash) was given by the insurance company to its employees engaged in insurance broking/corporate agency services. The RBI had conducted the statutory inspection for Monitoring Assessment (ISE) with reference to the financial position of the bank as on March 31, 2020.
Earlier, RBI had taken major action on private sector bank Kotak Mahindra Bank last week. The Reserve Bank had imposed a fine of Rs 1 crore 5 lakh on Kotak Bank. This fine was imposed due to laxity in following regulatory rules.
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