Penalty on Banks: RBI has again taken action against banks and co-operatives violating the rules. RBI has imposed financial penalty on three co-operative banks including HDFC Bank and Bank of America.
Penalty on Banks: Reserve Bank of India (RBI) has taken strict action against banks and co-operative banks violating the rules. RBI has imposed financial penalty on three co-operative banks including HDFC Bank, Bank of America. Central bank RBI has also issued show cause notice to all of them. This is the second action taken by RBI on banks and co-operatives in a week.
Both banks were fined Rs 10,000
HDFC Bank and Bank of America have been fined Rs 10,000 each. Both these banks were violating the rules of depositing money from Non-Resident Indians (NRIs). According to RBI, both the banks were not following the FEMA law properly. If proper response to the notice is not received, fine will be charged from them.
Three co-operative banks also measured
Three cooperative banks have also come under the ambit of RBI action. Among these, a fine of Rs 1 lakh has been imposed on Dhrangadhra People’s Co-operative Bank of Gujarat. The bank is accused of not properly following the rules related to deposits. Apart from this, a fine of Rs 1.5 lakh has been imposed on Mandal Nagrik Co-operative Bank of Ahmedabad and Rs 1.5 lakh on Patliputra Central Co-operative Bank of Bihar. The Central Bank has been continuously taking strict action against banks and co-operative banks for some time now.
Last week action was taken on 3 banks and 5 co-operatives
About a week ago, RBI had imposed a fine of more than Rs 10 crore on three banks violating the rules. Besides, action was also taken against 5 co-operative banks. The central bank had imposed a fine of Rs 5 crore on Citi Bank, Rs 4.34 crore on Bank of Baroda and Rs 1 crore on Indian Overseas Bank. The Reserve Bank had imposed a fine for not following the guidelines properly.
RBI had also imposed fine on 5 cooperative banks which were violating various rules. These include Shri Mahila Seva Cooperative Bank, Porbandar Departmental Citizens Cooperative Bank, Sarvodaya Citizens Cooperative Bank, Khambhat Citizens Cooperative Bank and Vejalpur Citizens Cooperative Bank. A fine ranging from Rs 25 thousand to Rs 2.5 lakh was imposed on them. These fines have no impact on customers.
