Last Updated on June 22, 2021 by Damini Patel
Indian The Reserve Bank has once again taken major action against co-operative banks. RBIIt has imposed fines of up to Rs 23 lakh on three co-operative banks in Mumbai, including Mogavira Co-operative Bank Limited, for violating various rules.
Mogavira Co-operative Bank Ltd. has been fined Rs. 12 lakh, Indapur Urban Co-operative Bank Rs. 10 lakh and Baramati Co-operative Bank Ltd. Rs. 1 lakh.
Disclosure in the inspection report
Mogavira Co-operative Bank in the central bank said that its inspection report on March 31, 2019, based on the bank’s financial condition, revealed that the bank had not fully transferred the unclaimed deposit to the depositor as well as the awareness fund, as well as the annual review of dormant accounts. Did not The inspection also found that the bank did not have a system for periodic review of account risk classification.
The RBI told Indapur Co-operative Bank that its inspection report dated March 31, 2019, based on the bank’s financial condition, revealed that its unsecured advances did not comply with a unified threshold and that it did not have a system for periodic review of bank risk classification. At the same time the bank did not have a strong system in place to alert customers in case of inconsistency of the transaction as a risk classification.