RBI has taken penalty action on 3 co-operative banks.
The Reserve Bank of India (RBI) has taken penalty action on Mogavira Co-operative Bank Ltd., Indapur Urban Co-operative Bank and Baramati Sahakari Bank Ltd. A total fine of Rs 23 lakh has been imposed on the three co-operative banks.
New Delhi. The Reserve Bank of India (RBI) has imposed a total penalty of Rs 23 lakh on three co-operative banks. These include Rs 12 lakh on Mogaveera Co-operative Bank Limited, Rs 10 lakh on Indapur Urban Co-operative Bank and Rs 10 lakh on Baramati Sahakari Bank Limited. Penalty) has been imposed with a fine of Rs 1 lakh. The central bank has taken penalty action on all these cooperative banks for not following various rules.
Mogaveera did not transfer funds completely
The Reserve Bank said that the investigation of Mogavira Co-operative Bank Limited found that the bank had not fully transferred the unclaimed deposits to the Depositor Education and Awareness Fund (DEA Fund). Apart from this, the cooperative bank did not even conduct annual review of inoperative accounts. At the same time, the bank has not put in place any system of review from time to time for risk categorization of accounts. Also, the central bank said that many customers have been found in the bank, who have many Unique Customer Identification Codes (UCICs). At the same time, the UCIC of many customers has been found to be the same. In view of these omissions, a fine of Rs 12 lakh has been imposed on the bank.
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According to the central bank, in view of the financial position of Indapur Urban Co-operative Bank, it was found that the bank has not fixed any limit on unsecured loans. Apart from this, this cooperative bank has also not put in place any system of review from time to time for risk categorization of accounts. Apart from this, the bank did not follow many other rules also. In such a situation, a fine of Rs 10 lakh was imposed on the bank. An investigation by Baramati Co-operative Bank found that the bank had exceeded the prudential inter-bank (single bank) exposure limit. Therefore, a penalty of Rs 1 lakh has been imposed on the bank.