RBI, on Tuesday, announced that it had fined 4 Co-operative Banks for violation of certain regulations.
RBI imposed a fine of Rs.1.125 Cr on a Hyderabad-based Andhra Pradesh Mahesh Co-operative Urban Bank, Rs.62.5 lakh on Ahmedabad-based Ahmedabad Mercantile Co-operative Bank, and two Mumbai-based banks, SVC Co-operative Bank and Saraswat Co-operative Bank, were fined Rs. 37.5 Lakhs and Rs.25 Lakhs respectively.
The Hyderabad-based bank was penalised for not following the guidelines in RBI’s Master Direction on “Interest Rate on Deposit” and “Know Your Customer”.
The Ahmedabad-based bank was fined for breaching the norms in Master Directions on “Interest Rate on Deposits”. SVC Co-operative Bank was imposed with a penalty for not following the directions on “Interest Rate on Deposits” and “Frauds Monitoring and Reporting Mechanisms”.
Saraswat Co-operative Bank was fined for not following the guidelines for “Interest Rate on Deposits” and “Maintenance of Deposit Accounts”.
RBI emphasised that the penalties imposed on these banks were for not following the regulations given to them by the RBI and NOT for any agreement or transaction made by the bank with their customers.