Five cooperative banks are penalized financially by the RBI for breaking rules

 Five cooperative banks are penalized financially by the RBI for breaking rules

The aforementioned banks are: The Thane District Central Co-operative Bank; The Kutch Mercantile Co-operative Bank; The Bhabhar Department Civil Co-operative Bank; as well as The Shri Morbi Civil Co-operative Bank.

On December 22, the Reserve Bank of India (RBI) announced that it has fined five cooperative banks for breaking regulations.

The aforementioned banks are: The Thane District Central Co-operative Bank; The Kutch Mercantile Co-operative Bank; The Bhabhar Department Civil Co-operative Bank; as well as The Shri Morbi Civil Co-operative Bank.

According to the release, the central bank fined the Progressive Mercantile Co-operative Bank, the Kutch Mercantile Co-operative Bank, the Thane District Central Co-operative Bank, the Shri Morbi Nagarik Co-operative Bank, as well as the Bhabhar Department Citizens Co-operative Bank Rs 7 lakh, Rs 3 lakh, and Rs 2 lakh.

Due to violations of prudential inter-bank gross exposure limitations and counterparty exposure restrictions, Progressive Mercantile Co-operative Bank has been punished.

However, Kutch Mercantile Co-operative Bank has authorized loans to its nominal members, each of which has an amount that exceeds the appropriate limit, in violation of both the prudential inter-bank counterparty exposure limitations and the prudential inter-bank aggregate exposure limits. Greater than.

Due to its violations of prudential inter-bank counterparty exposure restrictions, Sree Morbi Nagrik Cooperative Bank was punished.