RBI has imposed fines on four state cooperative banks, including Saraswat Cooperative Bank, the largest cooperative bank in the country. The bank has been fined Rs 30 lakh for failing to report the correct figures of Income Recognition and Asset Classification for Non-Performing Assets (NPAs).
The other banks which have been fined are Thane-based TJSB Sahkari Bank Ltd, Mumbai-based Bharat Cooperative Bank Ltd. and Ahmednagar-based Nagar Cooperative Bank Ltd. They have been fined Rs 45 lakh, Rs 60 lakh and Rs 40 lakh, respectively. However, the cooperative bank sector in the state is crying foul over the RBI’s action and says it shows the central bank’s step-motherly treatment towards cooperative banks.
The press release issued by the RBI states, “These banks have been fined because of non-compliance with RBI’s guidelines regarding NPAs as on March 31, 2018. These banks were subsequently given time to explain their position, both in writing and orally. However, the RBI is not satisfied with their explanation and has decided to impose monetary fine on them.” The fine has been imposed for so-called irregularities in the financial year 2017-18.
If the RBI can wait for two years to take action, it could have certainly waited for a few more months until things returned to normalcy Vidyadhar Anaskar President of Maharashtra Urban Cooperative Banks Federation