RBI imposes monetary penalty on four co-operative banks for rule violations

The Reserve Bank of India (RBI) said it has imposed monetary penalty on four co-operative banks for rule violations.

These banks are Rajdhani Nagar Sahkari Bank, Zila Sahakari Bank, Rajkot Nagarik Sahakari Bank, and District Co-operative Bank.

The central bank imposed Rs 43.30 lakh on Rajkot Nagarik Sahakari Bank, Rs 5 lakh each on Rajdhani Nagar Sahkari Bank and Zila Sahakari Bank, and Rs 2 lakh on District Co-operative Bank, the RBI said in a release.

The monetary penalty on Rajkot Nagarik Sahakari Bank has been imposed as banks granted certain loans to firms in which the directors of the bank were interested as directors, the RBI noted.

Also, the bank opened savings deposit accounts of certain ineligible entities, and levied penal charges for non-maintenance of minimum balance in certain inoperative accounts, further added the central bank.

Moreover, Rajdhani Nagar Sahkari Bank has been penalised as the charge of not classifying certain loan accounts as non-performing in accordance with the IRAC norms was sustained, the RBI stated in the release.