RBI penalises three cooperative banks for violating norms

The Reserve Bank of India (RBI) on October 3 imposed a monetary penalty on three Maharashtra-based cooperative banks for not complying with regulatory norms.

The central bank has imposed a penalty of Rs 18.50 lakh on Nagpur Nagarik Sahakari Bank for accepting fixed deposits from other urban cooperative banks, despite being ineligible for the same, according to a release.

The RBI has also penalised Rajarambapu Sahakari Bank with a fine of Rs 28 lakh as the bank had not provided a direct link for its customers to lodge complaints, with a specific option to report unauthorised electronic banking transactions, on the home page of its website, the central bank said in a separate release. The bank had also not paid applicable interest on balance amounts lying in current accounts of deceased individual depositors or sole proprietorship concerns while making repayments to the claimants, said the central bank.

Additionally, the RBI has also imposed a monetary penalty of Rs 20 lakh on Vasai Vikas Sahakari Bank for reporting frauds with delay, according to another release.