RBI slaps fine on three co-operative banks. Details here
Premium- RBI has slapped ₹1 lakh penalty on one bank, and ₹2 lakh fine on two others
The Reserve Bank of India (RBI) on Monday imposed penalty on three co-operative banks, two from Tamil Nadu and one from Jammu and Kashmir.
The banks that have been fined are: The Big Kancheepuram Co-operative Town Bank Limited-Kancheepuram, Chennai Central Co-operative Bank Ltd, and The Baramulla Central Co-operative Bank Limited.
The bank regulator has slapped ₹1 lakh penalty on The Chennai Central Co-operative Bank, and ₹2 lakh fine on the rest two banks.
In the case of Baramulla co-operative Bank, the RBI said the statutory inspection, conducted by NABARD, revealed contravention of certain sections "as the bank had let out its premise on rent; held immovable properties, not required for its own use, beyond the maximum period permissible without seeking any extension from RBI for the same".
The bank had also accepted fresh deposits in contravention of specific RBI directions. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed.
After considering the bank’s reply, the RBI came to the conclusion that the charges of contravention, violation were substantiated and warranted imposition of monetary penalty.
In the second case, the RBI said that the inspection report of The Big Kancheepuram Co-operative Bank based on its financial position as on March 31, 2020 revealed violation, non-compliance. Based on the same, a notice was issued to the bank.
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