RBI Fines 3 Banks for Breaking Rules
The Reserve Bank of India (RBI) has fined three co-operative banks for not following the rules.
These fines were given after checking the banks’ records with help from the National Bank for Agriculture and Rural Development (NABARD).
Fine for Gulbarga and Yadgir District Co-operative Central Bank, Karnataka
Date of Fine: February 18, 2025
Fine Amount: ₹50,000
What Went Wrong:
The bank didn’t send important reports to NABARD on time.
These reports help the RBI check if banks are working properly.
Law They Broke:
Section 47A(1)(c) and some other sections of the Banking Regulation Act, 1949.
Fine for Guntur District Co-operative Central Bank, Andhra Pradesh
Date of Fine: February 18, 2025
Fine Amount: ₹50,000
What Went Wrong:
The bank didn’t publish its financial report (a document that shows the bank’s money details) for the year 2022-23.
They also didn’t send copies of the report to the RBI and NABARD on time.
Law They Broke:
Section 47A(1)(c) and related sections of the Banking Regulation Act, 1949.
Fine for Mahila Sahakari Bank, Vadodara, Gujarat
Date of Fine: February 19, 2025
Fine Amount: ₹25,000
What Went Wrong:
The bank didn’t upload customer Know Your Customer (KYC) details to the central database on time.
KYC records help prevent fraud by checking customers’ identities.
Law They Broke:
Section 47A(1)(c) and related sections of the Banking Regulation Act, 1949.
Important Note from RBI
These fines were given because the banks didn’t follow the rules.
However, the fines won’t affect the money people have in these banks or any transactions they make.
The RBI will keep watching banks to make sure they follow the rules and keep customers’ money safe.
