RBI Drops the Hammer: 4 Co-operative Banks Fined!

The Reserve Bank has given fines to four co-operative banks because they didn’t stick to certain guidelines. The banks that received these fines are: Ordnance Equipment Factory Prarambhik Sahkari Bank, Vishwanathrao Patil Murgud Sahakari Bank, Shibpur Co-operative Bank, and Chiplun Urban Co-operative Bank.

Here’s a brief on their mistakes:

* Ordnance Equipment Factory Prarambhik Sahkari Bank in Kanpur had to pay ₹3.00 lakh. They offered a higher interest rate on deposits than what’s allowed compared to the State Bank of India.


* Vishwanathrao Patil Murgud Sahakari Bank in Maharashtra was charged ₹1.00 lakh. They provided loans for reasons that aren’t approved by the Reserve Bank’s rules.


* Shibpur Co-operative Bank in West Bengal received a fine of ₹10,000. They didn’t stick to guidelines about how much money they can borrow or lend with other banks.


* Chiplun Urban Co-operative Bank in Maharashtra was charged ₹2.00 lakh. They provided more gold loans than allowed and charged customers too much when their account balances were low.


These fines were given due to rule violations, and not because of the nature of agreements these banks had with their customers.