New Delhi: The Reserve Bank of India (RBI) announced on April 18, 2024, that it has imposed monetary penalties on four cooperative banks for violating regulations. Read on further to find out the story in detail.


Penalized Banks


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The banks facing penalties are Rajdhani Nagar Sahkari Bank, Zila Sahakari Bank, Rajkot Nagarik Sahakari Bank, and District Co-operative Bank. (Also Read: Varyaa Creations IPO To Open On April 22: Check Lot Size, Price Band, And More)


Amount Of Penalties


According to the RBI, Rajkot Nagarik Sahakari Bank has been fined Rs 43.30 lakh, while Rajdhani Nagar Sahkari Bank and Zila Sahkari Bank have been fined Rs 5 lakh each. District Co-operative Bank faces a penalty of Rs 2 lakh. (Also Read: Golden Opportunity To Own Plot In Greater Noida: YEIDA Relaunches Group Housing Scheme -- Check Details)


Reasons For Penalties


The penalty on Rajkot Nagarik Sahakari Bank was imposed for granting loans to companies in which the bank's directors held interests.


Additionally, the bank opened savings deposit accounts for ineligible entities and charged penalties for non-maintenance of minimum balances in inactive accounts, as per the RBI.


Violation Details


Rajdhani Nagar Sahkari Bank was penalized for not classifying certain loan accounts as non-performing by regulatory norms.


RBI's Statement


In its release, the RBI emphasized the importance of adhering to banking regulations and maintaining transparency in banking operations. The penalties serve as a reminder to banks to uphold regulatory standards and ensure compliance with guidelines.