RBI imposed a fine of 23 lakhs on 3 cooperative banks of Maharashtra, action for not following the rules

The Reserve Bank of India (RBI) has imposed a total fine of Rs 23 lakh on 3 co-operative banks in Maharashtra for non-compliance with the rules. The 3 co-operative banks that RBI has imposed a penalty on are Mogavira Cooperative Bank Ltd, Indapur Urban Cooperative Bank and Baramati Sahakari Bank Ltd.

The RBI has imposed the maximum penalty of Rs 12 lakh on Mogaveera Co-operative Bank Limited of Mumbai. This penalty has been imposed on the bank due to irregularities in the maintenance and KYC of the deposit account. The RBI’s inspection report revealed that the co-operative bank had not fully transferred the unclaimed deposits to the Depositor Education and Awareness (DEA) Fund as on March 31, 2019.

SAT allows PNB Housing Finance to convene EGM on June 22 to vote on deal with Carlyle, a setback for SEBI

Also, Mogavira Cooperative Bank did not conduct annual review of non-operating accounts. Whereas it is necessary to do so under the rules. Apart from this, this bank had also not made any arrangement to review the risk category of accounts from time to time.

Similarly, RBI has imposed a fine of Rs 10 lakh on Indapur Urban Cooperative Bank of Pune. According to RBI, the investigation report of this bank revealed that the bank had not complied with the total ceiling of unsecured advances till March 31, 2019. Not only this, the bank had also not made any arrangement to review the risk category of all the accounts from time to time.

After The Bell: After a good recovery from the lower levels, the market closed on the edge, what should be the investment strategy on Tuesday

Whereas, RBI imposed a fine of Rs 1 lakh on Baramati Co-operative Bank. The penalty was imposed on the bank for breaching the Prudential Inter-Bank Exposure Limit in transactions with any other bank. RBI has said that the decision to impose penalty on these three co-operative banks has been taken due to the lack of regulatory compliance.

Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.

.