A bank in Mumbai has to pay a huge amount as fine for not following the rules of the Reserve Bank. The case is of Apna Sahakari Bank in Mumbai, on which the Reserve Bank has imposed a fine of more than Rs 70 lakh. It is alleged that this cooperative bank was violating the rules of RBI.
According to Hindustan news, the Reserve Bank said that the statutory inspection of the bank has revealed that Apna Sahakari Bank has violated several rules, including NPA classification. The bank had also not complied with the directions for levying penal charges for non-maintenance of minimum balance in savings bank account and while paying interest or settling claims on deposits in current accounts of deceased individual depositors.
After this, RBI had also issued a notice to Apna Sahakari Bank. The notice asked to show cause as to why penalty should not be imposed on the bank for violation of the directions. According to the Reserve Bank, the penalty has been imposed after considering the bank’s reply to the notice and oral submissions made during the personal hearing.
The Reserve Bank, however, said the penalty was imposed due to lack of regulatory compliance and is not intended to raise questions about the validity of any transaction entered into by the bank with its customers or agreements entered into with them.