This decision has been taken due to irregularities in KYC.
Image Credit source: File Photo
reserve Bank of India (Reserve Bank of India) Nagarik Sahakari Bank Limited located in Raipur, Chhattisgarh (Nagrik Sahakari Bank Maryadit, Raipur) including three co-operative banks have been fined. These banks have been fined for lapses in regulatory compliance. The central bank told on Tuesday that the rules related to lending, statutory / other restrictions and know your customer (Know Your CustomerA fine of Rs 4.50 lakh has been imposed on Nagrik Sahakari Bank Maryadit for violation of rules. In addition, the Reserve Bank has issued District Co-operative Central Bank Maryadit (Jila Sahakari Kendriya Bank Maryadit, Panna) has also been fined one lakh rupees.
The penalty has been imposed for violation of certain provisions of the Banking Regulation Act, 1949, Depositor Education and Awareness Fund Scheme, 2014 and KYC. Also, a fine of Rs 25,000 has been imposed on the District Co-operative Central Bank Maryadit (Sahkari Kendriya Bank Maryadit, Satna) for non-compliance with the provisions of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014.
Fines were imposed on 3 co-operative banks in February too
Last week, the Reserve Bank of India (RBI) imposed fines on three other cooperative banks, two in Tamil Nadu and one in Jammu and Kashmir. RBI said that it has imposed a total fine of Rs 5 lakh on three co-operative banks. This penalty has been imposed for lack of regulatory compliance. The central bank said in a statement that the Baramulla Central Co-operative Bank Limited of Jammu and Kashmir has been fined Rs 2 lakh for contravening the directions of the RBI to prohibit the acceptance of new deposits. went.
License of this co-operative bank canceled
Earlier this month, RBI canceled the license of Independence Co-operative Bank Ltd of Maharashtra. The central bank said, after February 3, 2022, the bank will not be able to do any business. In view of the financial condition of the bank, the Reserve Bank had imposed restrictions last year also. Due to the then decision, customers could not withdraw money for 6 months. After the bank's business situation did not improve, the Reserve Bank has now decided to cancel the license.
Ban extended for 3 months
In the month of February, the Reserve Bank had taken strict action against many cooperative banks. The central bank had extended the restrictions on Milath Co-Operative Bank based in Devangare, Karnataka for another three months till 7 May 2022. RBI had first banned this cooperative bank in May 2019.
Verdict on Mercantile Co-operative Bank
Prior to that, in January 2022, the RBI had imposed several restrictions on Indian Mercantile Cooperative Bank Ltd. of Lucknow, including a withdrawal limit of one lakh rupees. The co-operative bank will not grant or renew any loan, advance or make any investment without its approval. RBI said, no depositor of the bank will be allowed to withdraw an amount exceeding one lakh rupees from the total balance in savings, current or other accounts. Certain terms and conditions will be applicable for this.
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