The big bank called the Central Reserve Bank has given a fine to four small banks that work together.
These small banks are named: The Becharaji People’s Bank, The Waghodia City Bank, The Viramgam Business Bank, and The Baramati Community Bank.
How much fine on which bank: The Reserve Bank has given a penalty of Rs 2,000 (two thousand rupees) to Becharaji Citizen Co-operative Bank and Rs 5,000 (five thousand rupees) to Waghodia Urban Bank for not following the rules.
The Viramgam Mercantile Co-operative Bank Limited received a fine of Rs 5,000, and The Baramati Co-operative Bank Limited was fined Rs 2,000.
According to the Central Reserve Bank, Becharaji Nagrik Co-operative Bank has done some things against the rules.
They didn’t follow the rules about how much money they can lend to other banks, and they also didn’t follow the rules about deposits.
On the other hand, Waghodia Urban Co-operative Bank Limited has been given a fine because they didn’t listen to the instructions from RBI about giving loans to their directors, their relatives, and companies they are interested in.
The bank also gave loans to people where the directors’ relatives promised to pay if the borrower couldn’t.
Besides, the bank didn’t pay interest on deposits for Sundays, holidays, or days when they weren’t working.
The Reserve Bank has given fines to two banks. The Viramgam Mercantile Co-operative Bank Ltd. got a fine because they didn’t follow the rules from RBI about directors lending money to other directors or being guarantors.
The Baramati Co-operative Bank Ltd. in Baramati, Pune, also got a fine because they didn’t follow the RBI rules about maintaining deposit accounts for urban co-operative banks.