RBI Penalties: This bank has paid a heavy fine of so much Rs what will be the condition of the customers?

Remember that The Kutch Mercantile Co-operative Bank, Bhabar Department Civil Co-operative Bank, and The Reserve Bank have also been fined by the Progressive Mercantile Co-operative Bank and Mr. Morbi Civil Co-operative Bank.

The Reserve Bank of India (RBI) continuously takes action on violation of bank rules RBI has fined Thane District Central Cooperative Bank for Rs 2 lakh in this case. This penalty has been imposed for alleged violation of bank rules by sanctioning a loan to the director of the bank. On 28 January, RBI imposed a fine of Rs 2 lakh on TDCC Bank, sections 20 and 56 of the Banking Regulation Act 1949.

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NABARD Inspection:

On March 31, 2022 an inspection of the financial position of the cooperative bank was carried out by the National Bank for Agriculture and Rura. Development (NABARD). At trial, TDCC Bank made a loan to one of its directors, which was against the rules.

The bank was given show cause notice. The RBI, after considering the bank’s response (notices and oral presentations) during the individual hearing concluded that the statutory provisions proved to be in violation This bank has been fined thereafter.

Penalties will also apply to these banks:

The Central Reserve Bank has also fined The Kutch Mercantile Co-operative Bank, Bhabar Department Civil Co-operative Bank, Progressive Mercantile Co-operative Bank and Mr Morbi Civil Co-operative Bank। Progressive Mercantile Co-operative Bank Rs 7 lakh The Kutch Mercantile Co-operative Bank has been fined Rs 3 lakh, And Mr. Morbi Civil Co-operative Bank and Bhabar Vibhag Civil Co-operative Bank have been fined Rs 50,000.

Recently the Reserve Bank imposed monetary fines on five cooperative banks due to a lack of regulatory compliance। Sanamitra Co-operative Bank Limited, The Contai Co-operative Bank Limited, The Lakhwad Citizen Co-operative Bank Limited, The Manmandir Co-operative Bank Limited and The Lakhwad Citizen Co-operative Bank Limited are these cooperative banks.

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