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

The central bank said that the penalties were due to deficiencies in regulatory compliance by the banks.

The Reserve Bank of India (RBI) on August 14 said it has imposed monetary penalties on four cooperative banks for violating rules.

These banks are the Nabapalli Co-operative Bank, Bally Co-operative Bank, the Aska Co-operative Central Bank and Baroda Gujarat Gramin Bank. The penalties ranged from Rs 50,000 to Rs 5 lakh.

The central imposed a penalty of Rs 2.50 lakh on Nabapalli Co-operative Bank and Rs 1 lakh on Bally Co-operative Bank. The penalty on Aska Cooperative Bank was Rs 50,000 and on Baroda Gujarat Gramin Bank was Rs 5 lakh.

The central bank said that the penalties were due to deficiencies in regulatory compliance by the banks.

“The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” RBI said in different releases.