Reserve Bank of India has imposed a fine of Rs 14.50 lakh on 5 banks. Many restrictions have been imposed on a bank, customers will not be allowed to withdraw money.
RBI Action: Reserve Bank of India has shown strictness against 6 banks for violating rules. Fine has been imposed on five banks. Only one has been banned. This action will not have any impact on the customers of the banks on which penalty has been imposed. But due to restrictions, bank customers will not be able to withdraw money for 6 months.
Customers of this bank will not be able to withdraw money from the account
The Reserve Bank of India has imposed several restrictions on The Konark Urban Co-operative Bank Limited, Ulhasnagar. This bank is not allowed to renew or approve loans or advances from Tuesday. Neither the bank can invest anywhere nor can it approve new deposits. Keeping in mind the current liquidity position of the bank, RBI has not given permission to all the depositors to withdraw money from the account. The Central Bank has given permission to adjust loan against deposits subject to prescribed conditions. Under the DICGC Act 2021, depositors can claim deposit insurance up to a limit of Rs 50 lakh. The Reserve Bank will review the situation of the bank for the next 6 months. The ban on the bank can also be removed if the financial condition improves.
The blame fell on these banks
The RBI has approved the approval of the Ambernath Jai Hind Co-operative Bank Limited (Maharashtra), the Panvel Co-operative Bank Limited (Raigarh, Maharashtra), the Fatehabad Central Co-operative Bank Limited, the Jogendra Central Co-operative Bank Limited (Solan Himachal Pradesh) and the Fine imposed on Nakodar Hindu Urban Co-operative Bank Limited. However, this action will not have any impact on the transactions or agreements taking place between the bank and the customers. This has been confirmed by the Reserve Bank.
This is the reason
- A fine of Rs 3 lakh has been imposed on Ambernath Jai Hind Co-operative Bank Limited. It prescribed penal charges for non-maintenance of minimum balance in savings account without giving one month’s notice to bank customers regarding the minimum balance requirement. Penal charges imposed for not maintaining minimum balance and activation charges on dormant accounts.
- A fine of Rs 1 lakh has been imposed on The Panvel Co-operative Urban Bank Limited for violating loan related rules.
- Central Cooperative Bank Limited has been fined Rs 2 lakh for not transferring the unclaimed deposits to the Education and Awareness Fund within the stipulated time limit.
- Jogendra Central Co-operative Bank Ltd has been fined Rs 3.50 lakh for delaying reporting of fraud to RBI.
- A penalty of Rs 5 lakh has been imposed on The Nakodar Hindu Urban Co-operative Bank Ltd for violating prudential inter-bank (gross) exposure limits.
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