RBI Cancel License: Reserve Bank of India (RBI) has taken major action. RBI has canceled the license of Kerala’s cooperative bank Ananthashayanam Cooperative Bank Limited Thiruvananthapuram. At the same time, heavy fine has also been imposed on four banks for not following the rules.
RBI Cancel License: Reserve Bank of India (RBI) has taken major action. RBI has canceled the license of Kerala’s cooperative bank Ananthashayanam Cooperative Bank Limited Thiruvananthapuram. At the same time, heavy fine has also been imposed on four banks for not following the rules. RBI often takes action on the basis of shortcomings of banks keeping in mind the safety of customers and regulations.
Bank’s license canceled – RBI issued notice
Ananthashayanam Co-operative Bank Limited was granted license on 19 December 1987, which has been canceled by the RBI. The Central Bank has taken this action under Section 56 and Section 36 A (2) of the Banking Regulation Act 1949. The bank has now been issued a notice to close banking business. However, the bank may still operate as a non-banking institution.
Fine imposed on these banks
Apart from this, RBI has also recently imposed fine on banks for not following the rules. A fine of Rs 1 lakh has been imposed on Shri Varna Co-operative Bank Limited of Kolhapur, Maharashtra. A fine of Rs 11 lakh has been imposed on HCBL Co-operative Bank Limited of Lucknow, UP for not following the rules related to loans and advances.
Apart from this, a fine of Rs 2 lakh has been imposed on The State Transport Co-operative Bank Limited of Mumbai, Maharashtra. A fine of Rs 6 lakh has been imposed on The Citizens Co-operative Bank Limited, Jammu. The imposition of penalty by RBI will not have any impact on the transactions between the bank and the customers.
