RBI Imposes Penalty on Finance Company and Co-operative Society:

RBI Imposes Penalty on Finance Company and Co-operative Society The Reserve Bank of India (RBI) has imposed a penalty on a Finance company and co-operative societies. These include Grewal Brothers Finance Company Private Limited in Kerala, Karnataka Central Co-operative Bank Ltd, Mangalore Co-operative Town Bank Ltd., Shimoga District Co-operative Central Bank Ltd., and Swarna Bharathi Sahakara Bank Niyamitha. These 5 institutions are been penalised for non-compliance with certain rules issued by the RBI. The total penalty on these 5 financial institutions is worth Rs. 5 lakh.

Penalty on Grewal Brothers Finance Company Private Limited

RBI has levied a monetary penalty of Rs. 50,000 on Grewal Brothers Finance Company Private Limited, Kerala. According to the apex institute, the penalty has been imposed on the company for non-compliance with 'Master Direction- Reserve Bank of India (Non-Banking Financial Company-Scale Based Regulation) Directions, 2023' issued by the RBI.

Penalty on Karnataka Central Co-operative Bank Ltd

The Karnataka Central Co-operative Bank Ltd has been penalised with Rs. 2 lakh by RBI. The penalty has been imposed as the bank violated the rules of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).

Penalty on Mangalore Co-operative Town Bank Ltd

RBI has imposed a monetary penalty of Rs. 1 lakh on Mangalore Co-operative Town Bank Ltd., Mangalore, Karnataka. The penalty has been levied as the bank did not follow the guidelines issued by RBI regarding 'Loans and advances to directors, their relatives, and firms /concerns in which they are interested'.

Penalty on Shimoga District Co-operative Central Bank Ltd

The RBI has levied a liability of Rs. 1 lakh on the Shimoga District Co-operative Central Bank Ltd., Karnataka. The penalty comes after the bank violated the rules under Section 20, read with Section 56 of the Banking Regulation Act, 1949 (BR Act).

Penalty on Swarna Bharathi Sahakara Bank Niyamitha, Bangalore

RBI has imposed a monetary penalty of Rs. 50,000 on the Swarna Bharathi Sahakara Bank Niyamitha, Bangalore, Karnataka. The financial institute has been penalised as it violated the rules of Section 31 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). RBI, during its investigation, found that the bank did not report its accounts and balance sheet for the financial year 2023-24 with the auditor's report to RBI, within the specified time.