RBI Action on Banks: Reserve Bank of India i.e. RBI keeps an eye on the functioning of banks and takes action against banks if they are found violating the rules. On Thursday, January 18, 2024, the Central Bank took action on five cooperative banks and imposed a fine of lakhs.
RBI has taken this step in case of ignoring the rules by them. The co-operative banks on which action has been taken include the names of NKGSB Co-operative Bank, Mumbai-based New India Co-operative Bank, Mehsana Nagrik Co-operative Bank of Gujarat and The Patdi Nagrik Co-operative Bank Limited of Gujarat.
NKGSB imposed a fine of Rs 50 lakh on Cooperative Bank
The Reserve Bank has imposed a heavy fine of Rs 50 lakh on NKGSB Co-operative Bank. Giving information on the matter, RBI said that the bank did not follow the RBI rules while opening the current account and had given permission to the customers for transactions in the account. After its investigation, RBI had issued a show cause notice to the bank, in which if it was not satisfied with the explanation given by the bank, RBI has imposed a full monetary penalty of Rs 50 lakh on NKGSB Cooperative Bank.
Penalty imposed on other banks for this reason
The Reserve Bank of India has imposed a fine of Rs 15 lakh on New India Co-operative Bank of Mumbai. The action has been taken against the bank for not following the rules made by RBI in the donated money. In the investigation conducted by RBI, it has been revealed that in the financial year 2020-21, the bank did not follow the RBI rules properly while giving donation from the profit.
Apart from this, in case of violation of rules while giving loans and advances, RBI has imposed a penalty of Rs 7 lakh on the cooperative bank of Mehsana, Gujarat. Due to ignoring other rules, action has been taken against The Patdi Nagrik Co-operative Bank Limited and Mehsana Nagrik Co-operative Bank.
How much impact will it have on customers?
The monetary penalty imposed by RBI on these five banks is not going to have any impact on the bank customers. This penalty has been imposed on the operations related work of banks and it will not affect their service in any way. Banks will continue to function normally.
