- By Aditya Pratap Singh
- Fri, 19 Apr 2024 10:44 AM (IST)
- Source:JND
RBI: The Reserve Bank of India (RBI) has fined five cooperative banks a total of 60.3 lakh rupees for violating various regulatory norms. The highest penalty of 43.30 lakh rupees has been imposed on the Rajkot Nagarik Cooperative Bank. This penalty has been imposed for not complying with RBI instructions regarding restrictions on loans and advances to directors and their relatives, among others.
The central bank has imposed a fine of 5 lakh rupees each on The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Co-operative Bank (Lucknow) and District Co-operative Bank, Garhwal (Kotdwar, Uttarakhand). Apart from this, a fine of 2 lakh rupees has been imposed on the District Cooperative Bank (Dehradun).
The Reserve Bank of India said that in each case, the penalty is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction entered into by the banks with their respective customers.
Earlier, the central bank imposed a fine of 1 crore rupees on IDFC First Bank and 49.70 lakh rupees on LIC Housing Finance for violation of some rules. The penalty was imposed on LIC Housing Finance for non-compliance with certain provisions of the Non-Banking Financial Companies – Housing Finance Companies (Reserve Bank) Guidelines, 2021.
In addition to this, RBI has cancelled the Certificate of Registration (CoR) of four NBFCs Kundals Motor Finance, Nitya Finance, Bhatia Higher Purchase, and Jeevanjyoti Deposits and Advances. These companies can no longer do NBFC business. At the same time, five other NBFCs – Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties, and Quikr Marketing have returned their registration certificates.
