RBI: The Reserve Bank of India (RBI) is always taking legal action against those who break bank regulations. The RBI has fined Thane District Central Cooperative (TDCC) Bank Rs 2 lakh in this series. This fine has been applied in response to claims that a bank director was given a loan in violation of the bank’s policies. In an order dated January 28, the RBI fined TDCC Bank Rs 2 lakh for violating Sections 20 and 56 of the 1949 Banking Regulation Act.
NABARD carries out inspections
On March 31, 2022, the National Bank for Agricultural and Rural Development (NABARD) carried out an inspection to assess the cooperative bank’s financial standing. According to the investigation, TDCC Bank approved a loan to one of its directors in violation of the regulations.
A show-cause notice was then sent to the bank. RBI concluded that the allegation of statutory provision violation was proven after taking into account the bank’s response to the notice and oral submissions made during the personal hearing. This bank has since been hit with a fine.
Fines also apply to these banks
The Kutch Mercantile Co-operative Bank, Bhabhar Department Civil Co-operative Bank, Progressive Mercantile Co-operative Bank, and Shri Morbi Civil Co-operative Bank have also been fined by the Central Reserve Bank. The Progressive Mercantile Co-operative Bank, The Kutch Mercantile Co-operative Bank, and Shri Morbi Civil Co-operative Bank and Bhabhar Vibhag Civil Co-operative Bank have all been fined Rs 7 lakh, Rs 3 lakh, and Rs 50,000 by the central bank.
RBI Imposes Penalties on Five Cooperative Banks
Five cooperative banks were penalised financially by the Reserve Bank a few days prior for noncompliance with regulations. Manmandir Co-operative Bank Limited, Lakhvad Nagrik Co-operative Bank Limited, Contai Co-operative Bank Limited, Sarvodaya Co-operative Bank Limited, and Sanmitra Co-operative Bank Limited are the names of these cooperative banks.
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