RBI has taken this step in case of ignoring the rules by them. The co-operative banks on which action has been taken include the names of NKGSB Co-operative Bank, Mumbai-based New India Co-operative Bank, Mehsana Nagrik Co-operative Bank of Gujarat and The Patdi Nagrik Co-operative Bank Limited of Gujarat.

NKGSB imposed a fine of Rs 50 lakh on Cooperative Bank

The Reserve Bank has imposed a heavy fine of Rs 50 lakh on NKGSB Co-operative Bank. Giving information on the matter, RBI said that the bank did not follow the RBI rules while opening the current account and had given permission to the customers for transactions in the account. After its investigation, RBI had issued a show cause notice to the bank, in which if it was not satisfied with the explanation given by the bank, RBI has imposed a full monetary penalty of Rs 50 lakh on NKGSB Cooperative Bank.

Penalty imposed on other banks for this reason

The Reserve Bank of India has imposed a fine of Rs 15 lakh on New India Co-operative Bank of Mumbai. The action has been taken against the bank for not following the rules made by RBI in the donated money. In the investigation conducted by RBI, it has been revealed that in the financial year 2020-21, the bank did not follow the RBI rules properly while giving donation from the profit.

Apart from this, in case of violation of rules while giving loans and advances, RBI has imposed a penalty of Rs 7 lakh on the cooperative bank of Mehsana, Gujarat. Due to ignoring other rules, action has been taken against The Patdi Nagrik Co-operative Bank Limited and Mehsana Nagrik Co-operative Bank.

How much impact will it have on customers?

The monetary penalty imposed by RBI on these five banks is not going to have any impact on the bank customers. This penalty has been imposed on the operations related work of banks and it will not affect their service in any way. Banks will continue to function normally.

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According to the information given by the Reserve Bank on January 4, 2024, the banks on which action has been taken include The Co-operative Urban Bank, Shri Bharat Co-operative Bank, The Limdi Urban Co-operative Bank, The Sankheda Nagarik Co-operative Bank. And the name of The Bhuj Commercial Co-operative Bank is included. The Central Bank has imposed a fine ranging from Rs 50,000 to Rs 5 lakh on all these banks.

How much fine was imposed on which bank?

RBI has imposed a fine of Rs 5 lakh each on Shri Bharat Co Operative Bank and The Sankheda Nagarik Cooperative Bank. RBI has taken this action on The Sankheda Nagrik Sahakari Bank because the directors of the bank had become loan guarantors at many places, which is a violation of RBI rules. Along with this, the bank has also violated the rule of gross exposure limit between two banks. In such a situation, RBI has imposed this penalty on the bank.

The reason for imposing penalty on Shree Bharat Cooperative Bank is that the RBI investigation found that the bank has failed to follow the rules of Inter Bank Gross Exposure Limit. Along with this, the bank has also delayed paying interest on term deposit scheme. Apart from this, RBI has imposed a fine of Rs 1.50 lakh each on The Co-operative Urban Bank and The Bhuj Commercial Co-operative Bank. A fine of Rs 50,000 has been imposed on The Limdi Urban Co-operative Bank.

Will customers be affected?

The Reserve Bank has said that it has taken this action in case of violation of rules. RBI does not want to interfere in the functioning of banks in any way. This fine imposed by the Central Bank is not going to affect the general customers of the bank. Banks will continue to provide their services to customers normally.

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