Action taken by RBI..!? Cancel the license of this bank!?
The Reserve bank has imposed a penalty of Rs 1 crore on punjab and Sindh bank for not following the rules. The central bank has imposed a penalty of Rs 29.55 lakh on ESAF Small Finance bank for not following instructions on customer service in banks. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) said on january 12 that it had canceled the license of The Hiriyur City Co-operative bank citing weak financial position. In a press release issued by the Reserve bank in this regard, "The balance of the bank will be detrimental to the interest of the depositors as the bank in its current financial position will not be able to pay the full amount to the existing depositors. If the bank continues to operate, its business and the general interest of the customers will be adversely affected." On the other hand, the Reserve bank has imposed a penalty of Rs 2.49 crore on three banks including Thanalakshmi bank, punjab and sindhu Bank for not following the rules. Reserve bank has informed this information. Rs. 1.20 crore in loans and advances – Dhanalakshmi bank has been fined for non-compliance with certain norms of statutory and other controls, KYC, and interest rate on deposits, RBI said.
Reserve bank has imposed a penalty of Rs 1 crore on punjab & Sind bank for not following the rules. RBI has imposed a penalty of Rs 29.55 lakh on ESAF Small Finance bank for not following instructions on 'Customer service in Banks'. Earlier, the RBI had imposed penalties on the largest public sector bank SBI, private sector major HDFC, and icici bank in similar cases. RBI has suspended the banking transactions of Haripur City Co-operative bank after its license was revoked. This includes both depositing and withdrawing money. On behalf of the central bank, each account holder is entitled to claim deposits with the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a cash limit of Rs 5 lakh. According to data provided by the bank, 99.93 percent of depositors are entitled to receive their full amount from DICGC. On the other hand, the account holders of the banks which have been penalized by the RBI will not be affected.Earlier on january 11, the state-owned bank of Baroda (BOB) had already imposed Rs. RBI decided to waive the penalty of Rs 5 crore. On december 22, 2023, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india will pay the borrower a Rs. 5 crore penalty was revealed by BOB. The penalty was imposed due to the shortage of soiled note remittances, indicating normal wear and tear and problems in dealing with torn notes.