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On February 13, the RBI had restricted New India Co-operative bank from doing fresh business and accepting deposits, citing supervisory concerns.
After the Punjab and Maharashtra Cooperative Bank crisis in 2019, the RBI has been aggressively clamping down on erring cooperative banks
The central bank said that the penalties were due to deficiencies in regulatory compliance by the banks.
For a common customer, a cooperative bank is no different from regular bank as both type of entities are dealing with public money. Hence, regulations cannot be different for both sides
The scheme will come into force with effect from October 16, a release issued by the central bank said
Bailing out banks with taxpayers’ money is acceptable up to a point when failures happen after adverse economic or business circumstances or to avert a larger systemic collapse. But when ‘bailouts’ attempt to mollify public anger over malfeasance, it becomes a perverse incentive, especially when those piloting the escape route are themselves in the dock
About 3,000 depositors have been able to withdraw their money after turning 18 so far. Most of these children belong to middle and lower-income families from Sabarkantha and Aravalli districts.
The central bank said eligible depositors would be entitled to receive deposit insurance claim amount up to Rs 5 lakh based on submission of willingness by the depositors concerned.
The penalties have been imposed for reasons such as not paying interest on balance amount lying in current accounts of deceased individual depositors, and entering into One Time Settlement (OTS) scheme with the borrowers without prior written permission of RBI, among others.
The RBI periodically punishes erring cooperative banks for violations. If these continue, the central bank takes even stronger measures to safeguard the interest of depositors
The inspection report of the bank based on its financial position as of March 31, 2019 revealed that the bank had not put in place the system of periodic review of risk categorisation of accounts.
As per the data submitted by the bank, more than 98 percent of the depositors will receive full amounts of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC), the RBI said.
A bench comprising justices Arun Mishra and M R Shah was hearing the petition filed by some of the accused challenging the August 22 order of the Bombay High Court.
The agency has registered over 26 criminal cases under the Prevention of Money Laundering Act (PMLA), arrested 18 people and over 150 inquiries have been launched under the Foreign Exchange Management Act (FEMA) since November 8, official sources said.
With 50 percent or Rs 7.5 lakh crore worth of remonetisation complete, queues at banks have reduced substantially and are visibly longer only in poll bound states like Uttar Pradesh and Punjab, he said.
Repco Home Finance (RHFL) is making a fresh issue of 1,57,20,262 equity shares of Rs.10 each at a price band of Rs 165 to Rs 172. The offer is being made through 100% book building process wherein not more than 50% of the net issue.
