RBI imposes monetary penalty on 4 co-operative banks for violating rules

The Reserve Bank of India (RBI) on July 1 said it has imposed monetary penalty on four co-operative banks over rule violations.

These banks are The Gujarat Rajya Karmachari Co-operative Bank, The Rohika Central Co-operative Bank, The National Co-operative Bank, and The Bank Employees’ Co-operative Bank, the RBI said in a release.

The central bank imposed a Rs 1 lakh penalty on The Bank Employees’ Co-operative Bank, a Rs 2 lakh penalty on The National Co-operative Bank, a Rs 1.50 lakh penalty on The Rohika Central Co-operative Bank, and a Rs 7.50 lakh penalty on The Gujarat Rajya Karmachari Co-operative Bank, the release said.

The Gujarat Rajya Karmachari Co-operative Bank was penalised as it did not disclose the penalty imposed by the RBI in the ‘Notes to Accounts’ to the balance sheet in its annual report. It also did not provide documents and complete information pertaining to the affairs of the bank, required by the RBI inspecting officer(s), breached prudential inter-bank (counterparty) exposure limit and did not pay interest on matured term deposits from the date of maturity till the date of their repayment at the applicable rate, release said.