Page 19 - Banking Finance May 2024

RBI imposes Rs. 59.90 lakh teria and failure to reconstitute the These banks are Rajdhani Nagar
panel within the specified time and Sahkari Bank, Zila Sahakari Bank,
fine on Nashik co-op bank contravention of Supervisory Action Rajkot Nagarik Sahakari Bank, and Dis-

The Reserve Bank of India said it has Framework by the lender by sanction- trict Co-operative Bank.
imposed a penalty of Rs 59.90 lakh on ing fresh loans carrying risk weights of The central bank imposed Rs 43.30
Nashik-based Janalaxmi Cooperative more than 100 per cent in FY22. lakh on Rajkot Nagarik Sahakari Bank,
Bank for noncompliance with regula- It also imposed a fine of Rs 50,000 on Rs 5 lakh each on Rajdhani Nagar
tions. The Reserve Bank found out that Chikkamagaluru District Cooperative Sahkari Bank and Zila Sahakari Bank,
the bank had failed to constitute a Central Bank, Karnataka for delay in and Rs 2 lakh on District Co-operative
board of management within the ex-
reporting of frauds to National Bank Bank, the RBI said in a release.
tended timeline granted by RBI, sanc- for Agriculture and Rural Development
tioned credit facilities to its nominal The monetary penalty on Rajkot Nagarik
(NABARD).
members in excess of the prescribed Sahakari Bank has been imposed as banks
limit, and, opened/renewed term de- The RBI said it has also imposed a granted certain loans to firms in which
posits at interest rates higher than monetary penalty of Rs 25,000 on The the directors of the bank were interested
those offered by the State Bank of In- Dindigul Urban Co-operative Bank from as directors, the RBI noted.
dia for the same tenor. Tamil Nadu for sanction of loans to Also, the bank opened savings deposit
nominal members in excess of the pre-
The bank was served with a show scribed ceiling. accounts of certain ineligible entities,
cause notice, after which the penalty and levied penal charges for non-main-
was imposed in exercise of powers tenance of minimum balance in certain
under the sections of the Banking RBI imposes monetary inoperative accounts, further added
Regulation Act, an official statement penalty on four co-opera- the central bank.
said. Moreover, Rajdhani Nagar Sahkari
tive banks for rule viola-
The central bank also imposed a pen- Bank has been penalised as the charge
alty of Rs 28.30 lakh on Solapur Janata tions of not classifying certain loan accounts
Sahakari Bank for appointing a mem- The Reserve Bank of India (RBI) said it as non-performing in accordance with
ber on its board of management who has imposed monetary penalty on four the IRAC norms was sustained, the RBI
did not satisfy the 'fit and proper' cri- co-operative banks for rule violations. stated in the release.

BANKING FINANCE | MAY | 2024 | 17