RBI impose restrictions on eight banks

New Delhi: The Reserve Bank of India (RBI) often takes strict action if banking regulations are not followed properly. However, RBI has recently imposed restriction on 8 banks. Action has been taken against eight associate banks. A financial penalty of Rs. 40 lakh has also been imposed on these subsidiary banks for not following certain banking-related regulations.

In 2016, there were some guidelines of the RBI for the subsidiary banks regarding the interest rate. Mehsana Urban Cooperative Bank of Gujarat has been fined Rs 40 lakh for non-compliance. Similarly, a fine of 7 lakhs has been imposed on the Indapur Urban Cooperative Bank of Maharashtra. Action has been taken against Barud Urban Cooperative Bank and Yuvatmal Urban Cooperative Bank of Maharashtra, District Assistant Bank of Madhya Pradesh.

In addition, a fine of 25 lakhs has been imposed on Chhattisgarh State Assistant Bank Mariyadit for violating the rules. RBI has taken action against Garha Urban Cooperative Bank of Madhya Pradesh, Guna, Goa State Urban Cooperative Bank, Panaji. The RBI has said that action has been taken against a total of 8 banks. Before this, RBI took action on Lucknow Urban Cooperative Bank, Sitapur Urban Cooperative Bank.

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