The Reserve Bank of India (RBI) has imposed monetary penalties on three banks in Gujarat for violation of the central bank’s lending norms, according to an official statement issued today.

A penalty of ₹4 lakh was imposed on Shree Lodra Nagarik Sahakari bank ltd at Lodra in Gujarat’s Gandhinagar district for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ and ‘Placement of deposits with other banks by primary (urban) co-operative banks (UCBs)’, the RBI statement said.

The RBI also imposed a penalty of ₹3.5 lakh on Malpur Nagarik Sahakari bank ltd, in Gujarat’s Aravalli district for non-compliance with the directions issued by RBI on ‘Placement of deposits with other banks by primary (urban) co-operative banks (UCBs)’.

Besides, the RBI has imposed a penalty of ₹25,000 on Limbasi urban co-operative bank Ltd in Kheda district for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ read with the directions issued by RBI on ‘Loans and advances to directors’ etc.

At the same time, the RBI said the action taken against the banks is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

The Reserve Bank of India (RBI) had imposed monetary penalties on four urban cooperative banks (UCB) in Gujarat for breach of rules on Oct 4.

(Source: IANS)

- Edited for style

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