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RBI imposes monetary penalty on three cooperative banks
August 23, 2023
The Reserve Bank of India (RBI) on August 21 said it has imposed monetary penalty on three cooperative banks for certain rule violations.
These banks are Pune-based Walchand Nagar Sahakari Bank, Dahanu Road Janata Co-operative Bank Ltd of Maharashtra and Devika Urban Co-operative Bank Ltd, J&K, according to an RBI press release.
While imposing a penalty of ₹3 lakh on Devika Bank, the RBI said inspection of the bank revealed that it had renewed the cash credit facility granted to a sole proprietorship concern whose proprietor was the wife of the director’s brother.
Based on the same, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions, as stated therein.
After considering the bank’s reply to the notice, the RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted the imposition of a monetary penalty, the RBI said.
In the case of Dahanu Road Janata Bank, the RBI imposed a penalty of ₹1 lakh saying the bank had given donation in violation of specific directions issued under RBI rules.
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