RBI slaps fines on 3 banks in Gujarat for breach of rules

The Reserve Bank of India (RBI) has imposed financial penalties on three cooperative banks in Gujarat for breach of rules after finishing up statutory inspections of their information.

According to an RBI assertion issued on Tuesday, a financial penalty of Rs 6.50 lakh has been imposed on Dhanera Mercantile Co-operative Bank Ltd., Dhanera, Gujarat for non-compliance with the instructions issued by RBI on loans and advances to administrators, kin and companies/considerations in which they’re .

The RBI has additionally imposed a financial penalty of Rs3.50 lakh on The Janata Co-operative Bank Ltd., Godhra, Panchmahal district, Gujarat for non-compliance with the instructions issued by RBI on Donations to trusts and establishments the place Directors, their kin maintain place or have an interest and loans and advances to administrators, kin and companies /considerations in which they’re .

The RBI has additionally imposed a financial penalty of Rs 1 lakh on Maninagar Co-operative Bank Ltd., Ahmedabad, for non-compliance with the instructions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Co-operative Banks – Interest Rate on Deposits’.

The RBI has clarified that in these three instances the actions are primarily based on deficiencies in regulatory compliance by the banks and are usually not meant to pronounce upon the validity of any transaction or settlement entered into by these banks with their prospects.

(With inputs from IANS)