Finance

Breaking News for Bank Account Holders: RBI Slaps Massive Fines on 4 Banks for Rule Violations

RBI Cracks the Whip: Heavy Penalties on 4 Cooperative Banks for Rule Violations!”

In a recent move, the Reserve Bank of India (RBI) has imposed significant monetary penalties on four cooperative banks for violations of regulations. The central bank announced this on Monday, November 6, taking action against these banks by Section 47A (1) (c) read with Section 46 (4)(i) and 56 of the Banking Regulation Act 1949.

Penalties on the Banks:

  1. Shri Lodra Nagrik Sahakari Bank Limited (Gandhinagar, Gujarat): A hefty fine of Rs 4 lakh has been levied.
  2. Malpur Nagrik Sahakari Bank Limited (Malpur Aravalli District, Gujarat): A fine of Rs 3.50 lakh has been imposed.
  3. Limbassi Urban Co-operative Bank Limited (Kheda District, Gujarat): A fine of Rs 25,000 has been imposed.
  4. Jolarpet Co-operative Urban Bank Limited (Vellore District, Tamil Nadu): A fine of Rs 50,000 has been imposed.

Reason for Penalties:

These banks were penalized for violating regulations related to loans. For instance, Shri Lodra Nagrik Sahakari Bank Limited granted a loan to a guarantor who turned out to be a relative of the bank’s director. Additionally, this bank breached prudential inter-bank aggregate exposure limits and inter-bank counterparty exposure limits.

Malpur Nagrik Sahakari Bank Limited also violated prudential inter-bank aggregate exposure limits and prudential inter-bank counterparty exposure limits.

Limbassi Urban Co-operative Bank Limited had a similar issue with a loan guarantor who was a relative of the directors.

Jolarpet Co-operative Bank Limited faced comparable allegations of rule violations.

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John Doe

John Doe is a passionate writer and commentator based in the United States. With a keen eye for current affairs and a deep understanding of political dynamics, John brings a unique perspective to the world of journalism. His incisive analysis and thought-provoking insights make him a trusted voice in American discourse. When he's not busy putting pen to paper, John enjoys exploring the diverse landscapes of the U.S., seeking inspiration from the rich tapestry of American culture and history.

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