Four cooperative banks were hit with financial penalties by RBI

Four cooperative banks were hit with financial penalties by RBI

Four cooperative banks were hit with financial penalties by RBI

The aforementioned banks are The Stambhadri Co-operative Urban Bank, The Navsarjan Industrial Co-operative Bank, The Mehsana District Panchayat Employees Co-operative Bank, as well as The Halol Urban Co-operative Bank.

On January 8, the Reserve Bank of India (RBI) announced that it had fined four cooperative banks for breaking regulations.

Navsarjan Industrial cooperatives Bank, Mehsana District Panchayat Employees Co-operative Bank, Stambhadri Co-operative Urban Bank, as well as Halol Urban Co-operative Bank are these banks.

According to the release, the central bank fined Navsarjan Industrial Co-operative Bank Rs 7 lakh, Mehsana District Panchayat Employees Co-operative Bank Rs 3 lakh, The Halol Urban Co-operative Bank Rs 2 lakh, as well as Stambhadri Co-operative Urban Bank Rs 2.5 lakh.

The reason for the penalty against Navsarjan Industrial Co-operative Bank was that the bank did not examine the risk categorization of accounts on a specified quarterly basis, breached interbank aggregate and counterparty exposure restrictions, and complained to the RBI's Depositor Education and Awareness Fund. No transfer of the eligible amount has occurred. said in a press statement.

According to the announcement, Mehsana District Panchayat Employees Co-operative Bank was penalized because it failed to send the appropriate amount to the Depositor Education and Awareness Fund and breached prudential interbank counterparty exposure restrictions.

Similar penalties were imposed on The Halol Urban Co-operative Bank for authorizing a loan in which a director's relative served as guarantor, in violation of prudential interbank counterparty exposure restrictions and interest not paid on matured fixed deposit accounts. According to the RBI, from the date of maturity to the date of repayment at the relevant rate.