Will consumers be impacted by the RBI's penalties of up to Rs 5 lakh levied on these 5 banks?

Will consumers be impacted by the RBI's penalties of up to Rs 5 lakh levied on these 5 banks?

Will consumers be impacted by the RBI's penalties of up to Rs 5 lakh levied on these 5 banks?

According to the RBI, the fine imposed on each of these five banks is based on regulatory compliance violations and isn't meant to call into question the legality of any agreements or transactions the bank has with its clients.

Five cooperative banks in Gujarat have been punished by the Reserve Bank of India (RBI) for failing to comply with its requirements. In the last month, the RBI has fined him anything from Rs 50,000 to Rs 5 lakh. The central bank stated in separate announcements on Thursday that it has penalized Vadodara's "Shri Bharat Sahakari Bank" for not adhering to its regulations about maintaining deposits in other banks together with interest on deposits since 2016. The order was made on December 13, 2023. imposed a Rs 5 lakh punishment for breaking the regulations.

According to the RBI, the fine imposed on each of these five banks is based on regulatory compliance violations and isn't meant to call into question the legality of any agreements or transactions the bank has with its clients. In a different instance, the RBI fined "Sankheda Nagrik Cooperative Bank," which is located in Sankheda in the Chhota Udaipur district of Gujarat, on December 7, 2023, for failing to follow instructions when providing loans and advances to directors, relatives, and desired firms/institutions. Additionally, the RBI imposed a fine of Rs 5 lakh on primary co-operative banks for violating rules regarding deposits in other banks.

In an order dated December 8, 2023, the central bank fined "Bhuj Commercial Co-operative Bank," which is based in Gujarat's Kutch area, Rs 1.50 lakh for failing to follow KYC (Know Your Customer) guidelines and for failing to pay deposit interest rates. imposed a Rs. fine.

In an order dated December 13, the RBI fined the "Limdi Municipal Co-operative Bank," which is situated in the Gujarati district of Dahod, Rs 50,000 for failing to comply with deposit rates. In a different ruling dated December 7, 2023, the RBI fined the Co-operative Urban Bank in Paralakhemundi, Gujarat, Rs 1.50 lakh for breaking a number of rules.