RBI has imposed a fine of Rs 62.50 lakh on Ahmedabad Mercantile Co-operative Bank, Rs 37.50 lakh on SVC Sahakari Bank of Mumbai and Rs 25 lakh on Saraswat Co-operative Bank of Mumbai for violating the rules.
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Violation in Master Direction on ‘Rate of Interest on Deposits’
According to the central bank, this penalty has been imposed on Andhra Pradesh Mahesh Co-operative Urban Bank for non-compliance of RBI’s instructions related to ‘Interest Rate on Deposits’ and ‘Know Your Customer’. Whereas Ahmedabad Mercantile Co-operative Bank has been penalized for violation of norms in the master directive on ‘rate of interest on deposits’.
The RBI said that it has imposed a penalty on SVC Co-operative Bank for non-compliance with the directions of ‘Interest Rate on Deposits’ and ‘Frauds Monitoring and Reporting Mechanism’. At the same time, Saraswat Co-operative Bank has been penalized for non-compliance with the instructions of ‘Interest rate on deposits’ and ‘Maintenance of deposit accounts’.
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Regarding the penalty imposed on banks, RBI said that this penalty has been imposed on the basis of deficiencies in regulatory compliance. These banks have also been warned for the future.
Also new instructions regarding appointment to the post of MD or Full Time Director (WTD)
A day earlier, the Reserve Bank of India (RBI) has also issued new instructions regarding the appointment of Managing Director (MD) or Whole Time Director (WTD) of Urban Co-operative Banks. According to the new instructions issued by RBI, MPs, MLAs, members of local bodies will no longer be able to become MD / WTD in primary urban cooperative banks.
The Reserve Bank has also fixed the eligibility for appointment to these posts. It states that for appointment to the post of MD or Whole Time Director of Urban Cooperative Banks, candidates should have graduation or the necessary qualification in the field of finance. RBI has issued a notification in this regard.