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The RBI has made it clear that these penalties are a result of lapses in regulatory compliance. They are not meant to pass judgment on the validity of any transaction or agreement made by the banks with their customers.
The banking regulator occasionally retaliates culpable cooperative banks for several violations.
RBI highlighted that its action is based on the deficiencies in regulatory compliance.
Following which the central bank earmarked immediate notices to the two co-operative banks. At hearing the bank’s reply, the central bank arrived at a cessation that the charges were backed with enough evidence also the warrant imposed (monetary penalty) was absolutely justified.
Last month, RBI had imposed a monetary penalty on 14 banks.