On September 21, the Reserve Bank of India (RBI) announced that it has fined Shree Warana Sahakari Bank and The State Transport Co-operative Bank for breaking the rules.
According to a statement from the central bank, The State Transport Co-operative Bank was fined Rs 2 lakh and Shree Warana Sahakari Bank was fined Rs 1 lakh.
The financial penalty was imposed on Shree Warana Sahakari Bank because the bank was charging a flat fine for failing to maintain the required minimum balance in savings accounts rather than one that was commensurate to the size of the failure.
The State Transport Co-operative Bank was fined because it neglected to transfer funds to the Depositor Education and Awareness Fund that were eligible for transfer.
The bank received a notice informing it that it must provide justification as to why a penalty should not be levied against it for failing to follow the notice’s instructions.
The Reserve Bank of India, also known as the RBI, is the country’s central bank and regulatory organisation and is in charge of overseeing the country’s financial sector. The Government of India’s Ministry of Finance is the owner. Control, issuance, and supply maintenance of the Indian rupee are its duties. It also oversees the primary payment networks for the nation and tries to advance its economic growth.