RBI Imposes Rs3.25 Lakh Penalty on Vidyasagar Central Cooperative Bank and Aurangabad DCC Bank
Moneylife Digital Team 25 October 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs3.25 lakh on two cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs2 lakh has been imposed on West Bengal-based Vidyasagar Central Cooperative Bank Ltd.
 
The other bank penalised is Bihar-based Aurangabad District Central Cooperative (DCC) Bank Ltd.
 
Vidyasagar Central Cooperative Bank has been penalised for non-compliance with the directions issued on housing finance. 
 
Aurangabad DCC Bank is fined Rs1.25 lakh for contravention of the provisions of section 26A of the Banking Regulation Act (BR Act) and non-compliance with directions issued by RBI on membership of credit information companies (CICs) by cooperative banks.
 
National Bank for Agriculture and Rural Development (NABARD) conducted a statutory inspection of the Aurangabad DCC Bank. During the inspection, it was found that the bank did not transfer the eligible amounts to the depositors education and awareness fund (DEAF) within the required timeframe. 
 
Additionally, the Bank failed to provide credit information about its borrowers to any of the four credit information companies (CICs), the central bank says.
 
RBI says its action against these two cooperative banks is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the banks with their customers.
 
Comments
Array
Free Helpline
Legal Credit
Feedback