LI Network
Published on: October 17, 2023 at 16:22 IST
The Reserve Bank of India (RBI) imposed fines on two financial institutions, namely the Gujarat Mercantile Co-operative Bank and Mumbai-based West End Housing Finance, for violations of regulatory norms.
The Gujarat Mercantile Co-operative Bank faced penalties due to its breaches of the prudential inter-bank gross exposure limit, prudential inter-bank counterparty exposure limit, and its failure to maintain the minimum Cash Reserve Ratio (CRR) on certain days.
The RBI levied a monetary penalty of Rs 1.7 lakh on West End Housing Finance, primarily because it did not obtain prior written permission from NHB/RBI for changes in its shareholding, leading to the transfer of shareholding beyond the permissible limit over time.
It’s important to note that these actions taken by the RBI are a response to regulatory compliance deficiencies and are not intended to make judgments about the validity of any transactions or agreements made by these financial institutions with their customers.
Furthermore, the RBI also imposed smaller fines on three other co-operative banks, which include Nagarik Sahakari Bank, The Sevalia Urban Co-operative Bank, and Makarpura Industrial Estate Co-operative Bank.
