New Delhi:- Reserve Bank of India has taken action against four cooperative banks. These banks are located in Gujarat and Maharashtra. RBI has given this information through a press release. The central bank has also issued orders to all the banks.
RBI took action against these banks
A fine of Rs 1 lakh has been imposed on Tarapur Co-operative Urban Bank Limited, District Anand, Gujarat. A fine of Rs 5.96 lakh has been imposed on Vaish Sahakari Bank Limited, Mumbai, Maharashtra.
A fine of Rs 15 lakh has been imposed on SBPP Co-operative Bank Limited, Kila Pardi, District Valsad. At the same time, RBI has imposed a fine of Rs 1 lakh on Bhadran People's Co-operative Bank Limited, District Anand, Gujarat.
what is the cause of action
Tarapur Co-operative Urban Bank Limited failed to comply with prudential inter-bank counterparty exposure limits. Bhadran People's Co-operative Bank Limited accepts interest free deposits in accounts other than current account. It also failed to upload the KYC records of customers to the Central KYC Recorder Registry within the prescribed time limit. Vysya Sahakari Bank Limited failed to deposit the stipulated amount in the MSE Refinance Fund maintained with SIDBI. SBPP Co-operative Bank Limited failed to classify loan accounts of some borrowers as non-performing assets.
Customers will not be affected
RBI had inspected the financial position of the bank in March 2023. During this period, shortcomings in compliance with the rules were revealed. After which show cause notice was issued to the banks. After response to the notice and investigation, the central bank decided to impose monetary penalty. This action will not affect the transactions or agreements between the bank and the customers.
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