look news india
The Reserve Bank of India (RBI) has once again taken strict steps to maintain transparency and financial discipline in the country’s banking system. The Reserve Bank has imposed monetary penalty on three major cooperative banks based in Maharashtra and Odisha for lapses in regulatory compliance and ignoring banking rules. If seen from a reporter’s perspective, this action of the Central Bank clearly indicates that any kind of negligence or laxity in the banking sector will not be tolerated at all.
Which banks were hit by RBI and how much was the fine imposed?
According to the official press release issued by the Reserve Bank, action has been taken against these co-operative banks using the powers given under the Banking Regulation Act, 1949:
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The Chikhali Urban Co-operative Bank Limited (Maharashtra): This bank, based in Buldhana, Maharashtra, has been imposed a monetary penalty of ₹13 lakh for violating RBI guidelines and rules related to ‘Depositor Education and Awareness (DEA) Fund.
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The Sambalpur District Intermediate Co-operative Bank Limited (Odisha): Financial penalty has been imposed on this co-operative bank based in Sambalpur, Odisha for not properly following KYC guidelines and rules related to maintenance of deposit accounts.
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Dharamveer Sambhaji Urban Co-operative Bank Limited (Pune, Maharashtra): Action has been taken against this Pune-based Urban Co-operative Bank for not uploading customer records on time in the Central KYC Records Registry (CKYCR) and ignoring the rules related to credit limit.
What will be the impact on customers’ accounts and money?
As soon as this news comes out, it is natural for the account holders of the respective banks to be worried about the safety of their money. However, the Reserve Bank of India (RBI) has completely clarified its position on this matter:
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No impact on customers: RBI has clarified that this action has been taken only due to ‘non-compliance with regulatory guidelines’ (Deficiencies in Regulatory Compliance) by the banks.
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Transactions are completely secure: The purpose of this penalty is not to cancel the validity of any transaction or agreement entered into between the bank and its customers. All customers’ deposits and banking services are completely secure.
RBI’s monitoring is becoming increasingly strict
After the irregularities that came to light in many co-operative banks in the last few years, the Reserve Bank has greatly tightened its supervisory surveillance over the urban and rural co-operative sector. Be it loan distribution, exposure limits or fraud detection and KYC norms – the central bank is taking immediate action against financial institutions that deviate even slightly from the norms, so that the interests of common banking customers can be protected.