IANS | 06 Nov, 2023
The Reserve Bank of India (RBI) has imposed monetary penalties on
three banks in Gujarat for violation of the central bank’s lending
norms, according to an official statement issued on Monday.
A
penalty of Rs 4 lakh was imposed on Shree Lodra Nagarik Sahakari Bank
Ltd at Lodra in Gujarat’s Gandhinagar district for non-compliance with
the directions issued by RBI on ‘Loans and advances to directors,
relatives and firms/concerns in which they are interested’ and
‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative
Banks (UCBs)’, the RBI statement said.
The RBI also imposed a
penalty of Rs 3.5 lakh on Malpur Nagarik Sahakari Bank Ltd, in
Gujarat’s Aravalli district for non-compliance with the directions
issued by RBI on ‘Placement of Deposits with Other Banks by Primary
(Urban) Co-operative Banks (UCBs)’.
Besides, the RBI has imposed a
penalty of Rs 25,000 on Limbasi Urban Co-operative Bank Ltd in Kheda
district for non-compliance with the directions issued by RBI on ‘Loans
and advances to directors, relatives and firms/concerns in which they
are Interested’ read with the directions issued by RBI on ‘Loans and
Advances to Directors etc.
At the same time, the RBI said the
action taken against the banks is based on deficiencies in regulatory
compliance and is not intended to pronounce upon the validity of any
transaction or agreement entered into by the banks with their customers.
