Penalty of two rupees charged to Bank for Non- compliance: RBI Imposes Fine on Cooperative Banks

The Reserve Bank of India (RBI) has imposed fines on several cooperative banks for failing to adhere to regulatory norms. Among them, Rajkot Nagarik Cooperative Bank faces a penalty of Rs 43.30 lakh for non-compliance with instructions regarding loans and advances to directors and their relatives. Additionally, penalties of Rs 5 lakh each have been levied on The Kangra Co-operative Bank (New Delhi), Rajdhani Nagar Co-operative Bank (Lucknow), and District Co-operative Bank, Garhwal (Kotdwar, Uttarakhand). The District Co-operative Bank in Dehradun received the lowest penalty of just two rupees.

This move by the RBI is part of its ongoing efforts to enforce banking regulations and ensure compliance within the industry. It’s important to note that these penalties are imposed based on lapses in regulatory compliance and do not impact the validity of transactions between the banks and their customers.

Customers of these cooperative banks need not be concerned about the fines imposed by the RBI, as they are unrelated to their banking transactions. The day-to-day operations and services provided by these banks to their customers remain unaffected.

While larger fines have been imposed on some banks, the nominal penalty of two rupees on the District Co-operative Bank in Dehradun stands out as an unusual case. Regardless, the RBI’s actions underscore the importance of regulatory compliance in the banking sector, ensuring the stability and integrity of the financial system.