The Reserve Bank of India has imposed penalties totaling 14.50 lakh rupees on 5 banks. Multiple bans have been imposed on one bank, denying customers the permission to withdraw money.
RBI Action
The Reserve Bank of India has shown strictness against violations of rules by 6 banks. Penalties have been imposed on five banks. Meanwhile, one bank has been banned. The penalty has been imposed on banks, but there will be no impact on customers of these actions. However, due to the ban, customers of the bank will not be able to withdraw money for 6 months.
Customers of this bank will not be able to withdraw money from the account
The Reserve Bank of India has imposed several restrictions on the Konaark Urban Co-operative Bank Limited, Ulhasnagar. This bank is not allowed to renew or grant loans or advances from Tuesday. The bank cannot make any investments, nor can it accept new deposits. RBI has also not allowed account holders to withdraw money from their accounts. The Reserve Bank has allowed adjusting loans against deposits under certain conditions. Under the DICGC Act 2021, depositors can claim deposit insurance up to Rs 50 lakh in capacity. The Reserve Bank will review the bank’s situation for the next 6 months. If there is an improvement in the financial situation, the ban on the bank can also be lifted.
These banks faced penalties
RBI has imposed penalties on Ambernath Jai Hind Co-operative Bank Limited (Maharashtra), The Panvel Co-operative Bank Limited (Raigad, Maharashtra), Fatehabad Central Co-operative Bank Limited, Joginder Central Co-operative Bank Limited (Solan, Himachal Pradesh), and Nakodar Hindu Urban Co-operative Bank Limited. However, there will be no impact on transactions or agreements between the bank and customers. The Reserve Bank has confirmed this.