look news india
RBI has Strict action has been taken against two banks. Both these banks are located in different states of India. They are accused of violating banking related rules. RBI gave this information on Monday 4 November.
A fine of Rs 1.5 lakh has been imposed on Sahyog Urban Co-operative Bank Limited, Udgir, Maharashtra. Whereas, a monetary penalty of Rs 1 lakh has been imposed on Tura Urban Co-operative Bank Limited, Tura, Meghalaya. RBI has taken this action under Sections 46 (4) (i), 56 and 47 A (1) (c) of the Banking Regulation Act 1949.
How much fine was imposed on which bank? (RBI monetary penalty)
Sahyog Urban Co-operative Bank Limited failed to transfer the bill amount to the Depositor Education and Awareness Fund within the stipulated time. Tura Urban Co-operative Bank Limited did not comply with the instructions issued under SAF and incurred capital expenditure in excess of Rs 25,000 per annum without prior approval of RBI. Also, new loans were sanctioned in excess of the risk limits prescribed under SAF.
What will be the impact on customers? (reserve Bank of India)
This was revealed during statutory inspection. After which notices were issued to the banks. The RBI decided to impose monetary penalty on both the banks only after considering the replies received to the notice and oral submissions during the personal hearing. However, this action has been taken on the basis of flaws in the rules. This will not affect the transactions or agreements between customers and banks.
