Why the Reserve Bank of India fined these four banks ... Read

New delhi date. October 30, 2019, Wednesday

The Reserve Bank of India has imposed a penalty of Rs 1 crore on Bandhan Bank. The penalty has been imposed for not bringing the promoter's stake in the bond bank to 40%.

Because of this the penalty imposed

Within three years of Bonding Bank launching its entire banking business, the stakeholder was to make up 40% of the paid up capital of the bank franchise. In 2014, Bandhan Bank received the general banking license, then in 2015, Bandhan Bank started working as a full bank.

Public Co-operative Bank fined

The Reserve Bank of India has imposed a penalty of Rs one crore on Janata Cooperative Bank Limited in Pune. The RBI imposes these penalties on violation of rules.

Penalties at People's Co-operative Bank

In addition, the RBI has imposed a fine of Rs 25 lakh on Jalgaon People's Co-operative Bank Limited for non-compliance with the instructions.

Penalties on Tamil Nadu Mercantile Bank

The RBI has earlier imposed a huge fine on the Tamil Nadu Mercantile Bank. The RBI has imposed a fine of Rs 35 lakh on the Bank of Tamil Nadu Mercantile Bank for violating the rules of fraud classification and notification.

In this connection, the central bank ordered on 24 October 2019. According to an RBI release on October 25, the Tamil Nadu Mercantile Bank did not follow its guidelines.

The bank has violated the rules, stating that the bank did not comply with some of the provisions of Fraud Classification and Reporting by Commercial Bank and Selected Directives.