How much fine was imposed on which bank?

A fine of Rs 5 lakh has been imposed on Indapur Co Operative Bank and Pune Bank. The central bank has taken this action due to ignoring the rules of deposit account and minimum balance maintenance. Mumbai-based Jankalyan Co-operative Bank Limited has neglected to follow the rules of credit information.

For this reason, RBI has also imposed a fine of Rs 5 lakh on this bank. Apart from this, a fine of Rs 2 lakh has been imposed on The Patan Urban Co-operative Bank of Satara for ignoring the RBI rules on Banking Regulation Act 1949. Action has been taken against Pune Merchants Co-operative Bank Limited for not maintaining adequate information about deposit accounts.

RBI has imposed a full fine of Rs 1 lakh on the bank. A penalty of Rs 1 lakh has been imposed on Pune Municipal Corporation Servants Cooperative Urban Bank for not sharing correct information about inoperative accounts.

RBI said this

While taking action against cooperative banks, RBI said that RBI has no intention of interfering in the functioning of banks. Action has been taken against all the banks due to ignoring the rules and it will not affect the customers. All these banks will continue to function normally.

License of this bank canceled

Recently, the Reserve Bank has canceled the license of Urban Cooperative Bank Limited located in Sitapur, Uttar Pradesh. RBI has completely banned the functioning of the bank from December 7. This action has been taken in view of the deteriorating financial condition of the bank.

According to the Central Bank, the bank had neither capital left nor any hope of business. In such a situation, keeping in mind the security of customers’ capital, the Reserve Bank has canceled the license of this bank. After the license of this bank is cancelled, up to Rs 5 lakh deposited in the account will be covered under insurance.

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RBI has canceled the license of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited located in Ichalkaranji, Kolhapur. This step has been taken by the Central Bank because the bank does not have sufficient capital and earning potential.

In a statement from RBI, it was said that ‘The bank has stopped banking operations from the close of business on December 4, 2023.’ According to the data filed by the bank, 99.85 percent of the bank’s depositors are entitled to get the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). While canceling the license of the bank, RBI said, ‘The bank does not have sufficient capital and earning potential. The co-operative bank with its current financial position will be unable to make full payments to its current depositors.

99.85 percent depositors will be able to get the entire deposit amount.

The Reserve Bank said that if the United India Co-operative Bank is allowed to carry forward its banking business, then public interest will be adversely affected. The bank with its current financial position will be unable to make full payments to its current depositors.

Let us tell you that under DICGC rules, every depositor of the bank will be entitled to receive the deposit insurance claim amount of his deposits up to the monetary limit of Rs 5 lakh. According to the data presented by the bank, 99.85 percent depositors are entitled to receive their entire deposit amount.

It was also informed by RBI that till July 24, DICGC has already paid the total insured deposits of Rs 41.60 crore under the provisions of Section 18A of the DICGC Act, 1961, based on the wishes of the respective depositors of the bank. Earlier, the Reserve Bank had imposed fine on four cooperative banks for not following the rules.

These co-operative banks are Jijamata Mahila Co-operative Bank Limited, Shri Lakshmikripa Urban Co-operative Bank Limited, The Konark Urban Co-operative Bank Limited and The Chembur Nagarik Co-operative Bank Limited.

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RBI said in its issued order that during the investigation, these banks have not followed the guidelines, due to which heavy fines are being imposed on them.

The central bank of the country has released the names of these four banks, which are co-operative banks. According to RBI, the banks on which penalty has been imposed include Baramati Cooperative Bank, Becharaji Nagarik Cooperative Bank, Waghodia Urban Cooperative Bank and Viramgam Mercantile Cooperative Bank.

How much penalty on which bank?

RBI said that a fine of Rs 2 lakh has been imposed on Baramati Co-operative Bank and Rs 2 lakh on Becharaji Nagarik Co-operative Bank. Apart from this, a fine of Rs 5 lakh has been imposed on Waghodia Urban Co-operative Bank and Rs 5 lakh on Viramgam Mercantile Co-operative Bank.

RBI gave instructions to banks

The Reserve Bank of India has imposed fine on all these banks for different reasons and has directed all the banks to follow the rules. If they do not follow the rules, fines and restrictions can be imposed.

Hackers had broken into the bank

It is worth noting that a few days ago, the Reserve Bank of India had imposed a fine on another bank, which had ignored the rules of cyber security. AP Mahesh Co-operative Bank was fined Rs 65 lakh. Hackers had broken into these banks and withdrawn Rs 12.48 crore.

What will be the impact on customers?

According to the rules of the Reserve Bank of India, the banks on which penalty is imposed. It has to be paid by the banks only. People opening an account in it do not have to pay this amount nor do they have to pay any kind of charge on it. This fine has to be paid only by the bank.

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Now the Reserve Bank of India (RBI) has taken a big decision regarding another bank. RBI has fixed the limit for withdrawing money from Co-operative Bank i.e. if you have an account with this bank then you can withdraw only Rs.

Decision taken considering the financial situation

Let us tell you that the Reserve Bank has taken this decision regarding the National Co-operative Bank located in Bengaluru. RBI has taken this decision keeping in view the financial condition of the bank. The National Co-operative Bank has 13 branches in Bengaluru, the capital of Karnataka.

Cannot issue new loans, along with this the bank cannot issue any new loan nor will it accept fresh deposits without the permission of the central bank. RBI has imposed business restrictions on the National Co-operative Bank for a period of 6 months from the close of business on 24 July 2023.

Can claim 5 lakhs

According to the information received from the Reserve Bank, the depositors of the bank can claim 5 lakh rupees in ‘Deposit Insurance and Credit Guarantee Corporation’ (Deposit Insurance and Credit Guarantee Corporation) under deposit insurance.

There may be a change in the decision

Apart from this, according to the circumstances, the Reserve Bank can change its decision. Along with this, can consider this decision. In May, this bank was fined citing violation of some rules. The Reserve Bank has said that the lender was charging fixed penal charges for shortfall in the minimum balance in the savings bank account instead of proportionate to the limit. Due to this, RBI had taken the action of penalty.

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