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

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 Sankheda Nagarik Cooperative Bank and Shri Bharat Cooperative Bank were fined Rs 5 lakh each by the RBI. In addition, The Co-operative Urban Bank as well as The Bhuj Commercial Co-operative Bank were fined Rs 1.50 lakh.

On January 4, the Reserve Bank of India (RBI) announced that it has fined five cooperative banks for breaking regulations.

The Co-operative Urban Bank, the Bhuj Commercial Co-operative Bank, the Sankheda Nagrik Sahakari Bank, the Limdi Urban Co-operative Bank, as well as the Shri Bharat Co-operative Bank include these banks.

A news statement said that Sankheda Nagrik Sahakari Bank as well as Shri Bharat Sahakari Bank were fined Rs 5 lakh each by the national bank. Additionally, The Co-operative Urban Bank as well as The Bhuj Commercial Co-operative Bank were fined Rs 1.50 lakh.

In a similar vein, The Limdi Urban Co-operative Bank was fined Rs 50,000 by the central bank.

Sankheda Nagarik Sahakari Bank has been punished for approving loans in which the bank's directors' relatives served as guarantors. The bank also broke prudential interbank counterparty exposure limitations and statutory interbank gross exposure limits. Was stated in the press announcement.

Due to violations of prudential interbank counterparty exposure limitations, prudential interbank aggregate exposure restrictions, and interest on matured fixed deposit balances from the maturity date to the payback date, Shri Bharat Co-operative Bank was punished. had not made a payment. According to the announcement, at the appropriate rate.