RBI Penalty on Banks: Reserve Bank of India has imposed penalty on 8 co-operative banks for non-compliance with banking rules. Even before this, such action has been taken by RBI against many banks.

RBI Penalty on Banks: Reserve Bank of India has imposed penalty on 8 co-operative banks for non-compliance with banking rules. Even before this, such action has been taken by RBI against many banks.

RBI Penalty on Banks: The Reserve Bank of India (RBI) has imposed a penalty on eight co-operative banks for finding fault with the rules. The maximum fine of Rs 55 lakh has been imposed on Visakhapatnam Co-operative Bank.

By issuing a statement from the central bank, it was told that it has imposed a fine on 8 banks. By giving several statements on behalf of the RBI, it said that it has imposed the maximum penalty of Rs 55 lakh on Visakhapatnam Co-operative Bank for ignoring the rules.

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10-10 lakh fine imposed on these banks

Apart from this, according to the information given by the Reserve Bank, Rs 10 lakh on Bharat Heavy Electricals Employees Co-operative Bank Kailashpuram, Tiruchirappalli, Tamil Nadu, Rs 5 lakh on Ottapalam Co-operative Urban Bank Limited in Kerala and Rs 5 lakh on Darussalam Co-operative, Hyderabad. Urban Bank has been fined Rs 10 lakh.

These banks also ignored the rules

The Reserve Bank said in a statement that a fine of Rs 10 lakh each has been imposed on both Nellore Co-operative Urban Bank Ltd. Gandhinagar, Kakinada Co-operative Town Bank Ltd. Kakinada. A fine of Rs 1 lakh has been imposed on Kendrapara Urban Co-operative Bank, Kendrapara, Rs 5 lakh on National Urban Cooperative Bank Ltd., Pratapgarh, Uttar Pradesh.

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Why was the bank fined

This penalty has been imposed on Visakhapatnam Co-operative Bank, Visakhapatnam, for contravention of directions related to income recognition, asset classification, provisioning and finance for housing schemes. In all these cases, RBI said that the penalty has been imposed on the negligence of the banks. In such a situation, the validity of any transaction or agreement entered into by banks with their customers will not be affected.

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