RBI Imposed A Penalty On Three Cooperative Banks

RBI imposed a penalty on these 3 cooperative banks, this is the big reason.

The Reserve Bank of India (RBI) on Wednesday imposed a total fine of Rs 8 lakh on three cooperative banks in Maharashtra for lapses in regulatory compliance.

A fine of Rs 4 lakh has been imposed on Excellent Co-operative Bank Mumbai and Rs 2 lakh each on Janseva Sahakari Bank Limited, Pune and Ajara Urban Co-operative Bank, Ajara (Kolhapur).

Excellent Co-operative Bank was fined for violation of directions issued by RBI on ‘Maintenance of Deposit Accounts’ and ‘Know Your Customer (KYC)’.

The penalty imposed on Janseva Sahakari Bank for violation of KYC instructions.

The central bank said that the Ajara Urban Co-operative Bank has been fined for violating the directive on ‘maintenance of deposit accounts.

The RBI said that the three banks were fined on the basis of deficiencies in regulatory compliance.

Significantly, RBI had recently imposed a fine of Rs 23 lakh on three co-operative banks including Mumbai’s Mogavira Co-Operative Bank Ltd. They were fined for not following various rules.

Mogavira Co-Operative Bank had not fully transferred the unclaimed deposits to the Depositor Education and Awareness (DEA) Fund on the basis of financial position.

Also did not conduct an annual review of dormant accounts.

The inspection also revealed that there was no system for periodic review of risk classification of accounts in the bank.

The Inspection Report on Indapur Co-operative Bank based on the financial position of the Bank as of 31st March 2019.

It revealed that the Bank has a robust system in place to generate alerts in case the transactions are inconsistent in terms of risk categorization of customers.

The high flight of share market, these stocks including TCS increased the rise of Sensex

BSE Sensex opened with a big gain on Thursday. Sensex opened up 226 points at 52532 points. During this, more than a dozen stocks including TCS saw a rise.

Nifty 50 was also trading up 62 points. He was at the high of 15749 till the time of writing the news. Earlier on Wednesday, the BSE Sensex had registered a fall after the rise of the last three days.

Despite a firm trend in Asian markets, selling in Reliance Industries, financial and metal stocks led the market down.

According to traders, the selling was intensified due to the continued outflow of foreign funds. However, a sharp decline in the rupee’s exchange rate against the dollar was curbed.