Mumbai (India), 25th April 2023: The RBI stated on April 24th that four cooperative banks have received fines totalling to Rs 44 lakh from the Reserve Bank for breaking various regulations.
A Rs 16 lakh fine has been handed to The Tamil Nadu State Apex Co-operative Bank in Chennai. Whereas The Bombay Mercantile Co-operative Bank has been fined Rs. 13 lakh by the Reserve Bank of India (RBI) for failing to transfer an acceptable amount to the Depositor Education and Awareness Fund (DEAF) within the allotted time frame.
The central bank stated in a separate press release that Janata Sahakari Bank, Pune, had been fined Rs 13 crore for failing to follow instructions on the “Interest Rate on Deposits.”
The Tamil Nadu State Apex Co-operative Bank has been penalised for failing to send the necessary funds to the Depositor Education and Awareness Fund within the allotted time. Additionally, it delayed reporting a fraud to NABARD.
Along with this The Baran Nagrik Sahkari Bank, located in Baran, Rajasthan, has been fined Rs 2 lakh for breaking certain norms laid down by the RBI.
According to the RBI, the fines are based on regulatory compliance shortcomings rather than on the legality of any transactions or agreements made by banks with their clients.
