The RBI levied financial penalties on these five banks

 The RBI levied financial penalties on these five banks

Five co-operative banks have been penalized by the Reserve Bank of India in accordance with Sections 46 (4) (i), 56, and 47 A (1) (c) of the Banking Regulation Act 1949.

Bank News: The Reserve Bank of India is still in activity (RBI activity). Five cooperative banks that disobeyed the regulations now face a monetary penalty from the central bank. These banks may be found around the nation in various states. Under Sections 46 (4) (i), 56, and 47 A (1) (c) of the Banking Regulation Act of 1949, penalties have been placed on all banks. On Monday, December 18, the RBI released a statement in this respect as well.

This West Bengal bank was penalized.

The Contai Co-operative Bank Limited, based in Purba Medinipur, West Bengal, has been fined Rs 1 lakh by RBI. This bank has not complied with the KYC regulations. Additionally, a procedure for routinely reviewing the risk rating of accounts was not established.

A fine was levied on this Gujarati bank.

The Lakhvad Nagrik Sahakari Bank Limited, which is situated in the Mehsana district, has been fined Rs 2 lakh by the Reserve Bank. It was discovered that the directors' families were the guarantors of the loan approved by this bank. Additionally, the bank violated prudential counterparty exposure restrictions and prudential interbank aggregate exposure limits.

fines on three Maharashtra banks

Three Maharashtran banks have been fined by RBI for breaking the guidelines. Mumbai-based Sarvodaya Co-operative Bank Limited has been fined Rs 1 lakh. This bank disregarded the SAF-related instructions and authorized the new loan. Sanmitra Sahakari Bank Limited in Pune has been fined Rs 1 lakh by the Central Bank for failing to follow deposit account management guidelines. The Manmandir Co-operative Bank Limited in Vita has been fined Rs 3 lakh. This bank failed to guarantee that high-risk clients' KYC was updated on a regular basis. Additionally, there was no periodic evaluation of the accounts' risk categorization performed. In addition, he was able to do an annual check of accounts that were no longer active.