RBI Penalty: Two Banks Fined – Check if You Hold an Account with Them

The Reserve Bank of India (RBI) has imposed penalties on two banks for regulatory violations. These penalties were announced on Monday, November 4, 2024, and were issued to banks located in Maharashtra and Meghalaya for failing to comply with certain banking regulations.

Details of RBI Penalties

Sahyog Urban Co-operative Bank Limited, Udgir, Maharashtra, was fined ₹1.5 lakh. The bank failed to transfer the required funds to the Depositor Education and Awareness Fund within the set timeline.

Tura Urban Co-operative Bank Limited, Tura, Meghalaya, received a penalty of ₹1 lakh. This bank breached RBI guidelines by making capital expenditures exceeding ₹25,000 per annum without prior approval and by issuing new loans that exceeded the risk limit under the Supervisory Action Framework (SAF).

The RBI’s action falls under sections 46 (4)(i), 56, and 47 A (1)(C) of the Banking Regulation Act of 1949.

Impact on Customers

This penalty is focused on compliance issues and will not impact regular banking transactions, customer accounts, or existing agreements with these banks. RBI’s inspection revealed these violations, and penalties were imposed after considering responses from the banks.