RBI imposes monetary penalty on five co-operative banks. Details here
Reserve Bank has imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: Shri Mahila Sewa Sahakari Bank Ltd, Porbandar Vibhagiya Nagarik Sahkari Bank Ltd, Sarvodaya Nagarik Sahakari Bank Ltd, The Khambhat Nagarik Sahakari Bank Ltd and The Vejalpur Nagarik Sahkari Bank Ltd.
The Reserve Bank imposed a monetary penalty of ₹2.50 lakh on Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad, Gujarat for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016’. The apex bank said that the Shri Mahila Sewa Sahakari Bank had breached the prudential inter-bank counterparty exposure limit, and not paid interest on matured term deposits from the date of maturity till the date of their repayment at the applicable rate.
The bank failed to pay interest on term deposits for the Sundays, holidays and non-business working days on which the same had matured and which were repaid on the succeeding working day, the RBI added. "Exciting news! Mint is now on WhatsApp Channels
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