RBI slaps fines on 3 banks in Gujarat for breach of rules

Mumbai: The Reserve Bank of India (RBI) has imposed monetary penalties on three cooperative banks in Gujarat for breach of rules after carrying out statutory inspections of their records.

According to an RBI statement issued on Tuesday, a monetary penalty of Rs 6.50 lakh has been imposed on Dhanera Mercantile Co-operative Bank Ltd., Dhanera, Gujarat for non-compliance with the directions issued by RBI on loans and advances to directors, relatives and firms/concerns in which they are interested.

The RBI has also imposed a monetary penalty of Rs3.50 lakh on The Janata Co-operative Bank Ltd., Godhra, Panchmahal district, Gujarat for non-compliance with the directions issued by RBI on Donations to trusts and institutions where Directors, their relatives hold position or are interested and loans and advances to directors, relatives and firms /concerns in which they are interested.

The RBI has also imposed a monetary penalty of Rs 1 lakh on Maninagar Co-operative Bank Ltd., Ahmedabad, for non-compliance with the directions issued by RBI on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)' and 'Co-operative Banks - Interest Rate on Deposits'.

The RBI has clarified that in these three cases the actions are based on deficiencies in regulatory compliance by the banks and are not intended to pronounce upon the validity of any transaction or agreement entered into by these banks with their customers.