On Thursday, Reserve Bank of India (RBI) has taken major action. The license of Ananthashayanam Co-operative Bank Limited, Thiruvananthapuram, Kerala has been canceled by the Central Bank of Kerala. Besides, heavy fine has also been imposed on four banks for violating the rules. Let us tell you that Reserve Bank of India often determines the deficiencies of banks keeping in mind the safety and rules of the customers.
RBI has issued a notice that the license of the bank has been cancelled.
On 19 December 1987, the license of Ananthashayanam Co-operative Bank Limited was canceled by the RBI. The Central Bank has taken this action under Section 56 and Section 36A(2) of the Banking Regulation Act 1949. Now a notice has been issued to stop banking services.
However, a bank may still be a non-banking institution. Funds deposited by non-members are banned immediately. Even after this, at the instance of the Reserve Bank, this bank will have to pay the unclaimed amount to its non-members.
RBI has imposed a penalty of Rs 1 lakh on Shree Varna Co-operative Bank Ltd (Kolhapur, Maharashtra) for not complying with the instructions on “Maintenance of Deposit Accounts – Primary Co-operative Banks”. HPCL Co-operative Bank Ltd (Lucknow, Uttar Pradesh) has been fined Rs 11 lakh for violating loan and advance norms.
A fine of Rs 2 lakh has been imposed on State Transport Co-operative Bank Limited (Mumbai, Maharashtra) for non-compliance of instructions related to “Depositor Education and Awareness Fund Scheme, 2014”. A fine of Rs 6 lakh has been imposed on Citizens Co-operative Bank Limited, Jammu. This action will not affect the transactions between the customer and the bank.