Five cooperative banks have been fined money by the Reserve Bank of India (RBl) for breaking one or more of the bank’s rules or for failing to follow one of its many instructions.
The organisations are Gondia District Central Co-operative Bank Limited, Gondia (Maharashtra), The Shirpur Peoples’ Co-operative Bank Ltd., Shirpur (Maharashtra), Shree Mahayogi Lakshmamma Co-operative Bank Ltd., Kurnool (Andhra Pradesh), The Attur Town Co-operative Bank Ltd., Attur, Salem District, Tamil Nadu, and Tirupati Urban Co- (Maharashtra).
According to an RBI press statement, the fines levied against these organisations vary from 50,000 to 3 lakh. The central bank stated in five independent announcements that its “activity is based on inadequacies in regulatory compliance and is not meant to pronounce upon the legitimacy of any deal or contract engaged into by the bank with its clients.”
This news is written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.