RBI Penalty on Saraswat Co-Operative Bank: The Reserve Bank imposed a monetary penalty of Rs 23 lakh on Saraswat Co-Operative Bank Limited, Mumbai for violating the provisions of the Banking Regulation Act, 1949 and the instructions issued by RBI.
Reserve Bank of India: From time to time, penalties are imposed on banks by the Reserve Bank due to lapses in regulatory compliance. Recently, after imposing a fine of crores of rupees on the largest public sector SBI and Indian Bank, RBI has imposed fine on three cooperative banks. This time RBI has imposed fine on Saraswat Co-operative Bank Limited, Bassein Catholic Co-operative Bank Ltd and Rajkot Nagarik Sahakari Bank Ltd.
Saraswat Cooperative Bank fined Rs 23 lakh
The Reserve Bank imposed a monetary penalty of Rs 23 lakh on Saraswat Sahakari Bank Limited, Mumbai for violating the provisions of the Banking Regulation Act, 1949 and the instructions issued by the RBI.
It was told by RBI that Saraswat Co-operative Bank violated the provisions of BR Act and the instructions of RBI issued under it. When the credit facility sanctioned to the loan taking company was renewed, a director of the bank was holding the post of independent director in the loan taking company.
Fine imposed on these two banks too.
Apart from this, a monetary penalty of Rs 25 lakh has been imposed on Maharashtra’s Vasai State Basin Catholic Co-operative Bank Limited for violation of the provisions of Section 20. Basin Catholic Cooperative Bank was found guilty of giving several unsecured loans to one of its directors/firms owned by him.
The Reserve Bank has imposed a monetary penalty of Rs 13 lakh on Rajkot Nagarik Sahakari Bank Limited, Rajkot for non-compliance with the instructions issued by RBI on ‘Interest Rate on Deposits’.
Fine was imposed on SBI.
RBI said that Rajkot Nagarik Cooperative Bank could not pay interest at the time of repayment on FD maturing on Sunday/holiday or non-business working day. Just a few days ago, RBI has imposed penalty on three public sector banks including SBI and Indian Bank. RBI said that a fine of Rs 1.3 crore has been imposed on SBI, Rs 1.62 crore on Indian Bank and Rs 1 crore on Punjab & Sindh Bank.
Let us tell you that from time to time, the Central Bank imposes fine on banks for lapses in regulatory compliance. But it does not have any effect on the bank account holders. The bank does not impose any restrictions on account holders’ cash withdrawal or deposit.
