RBI imposed a fine of Rs 59.90 lakh on this bank, know the reason

Mr journalist News (Bureau). The Reserve Bank of India said on Tuesday, March 26 that it has imposed a penalty of Rs 59.90 lakh on Nashik-based Janalakshmi Cooperative Bank for not following the rules.

The Reserve Bank came to the notice that the banks were sanctioning credit facilities to their nominal members in excess of the prescribed limit in constituting the board of management within the extended timeline given by the RBI. Has not been successful in opening/renewing term deposits at higher interest rates. Besides, this bank also offered higher interest rates on fixed deposits as compared to State Bank of India.

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An official statement said that a show cause notice was given to the bank, after which the penalty was imposed in exercise of powers under sections of the Banking Regulation Act.

The central bank imposed a penalty of Rs 28.30 lakh on Solapur Janata Sahakari Bank for the appointment of a member on its board of management, which did not meet the 'fit and proper' norms and Was not successful in re-making the panel within the stipulated time.

It imposed a fine of Rs 50,000 on Chikkamagaluru District Cooperative Central Bank of Karnataka for delay in reporting the fraud to the National Bank for Agriculture and Rural Development (NABARD). Also imposed a fine of Rs.

The RBI said it has also imposed a monetary penalty of Rs 25,000 on Dindigul Urban Co-operative Bank of Tamil Nadu for sanctioning loans to nominal members in excess of the prescribed limit. .