The Reserve Bank of India (RBI) has imposed a penalty of Rs 40 lakh on Shimla-based Himachal Pradesh State Cooperative Bank (Himachal Pradesh Rajya Sahakari bank)

The Reserve Bank of India (RBI) has imposed a penalty of Rs 40 lakh on Shimla-based Himachal Pradesh State Cooperative Bank (Himachal pradesh rajya sehkari bank). The fine has been imposed for violation of certain regulatory guidelines issued by NABARD. The Reserve Bank on Tuesday said the penalty has been imposed by the National Bank for Agriculture and Rural Development (NABARD) for not complying with the regulatory directives included in the ‘Review of Fraud Guidelines on Monitoring and Reporting System’.

In this context, a notice was issued to the State Cooperative Bank. After considering the bank’s reply and giving an opportunity for a personal hearing, the RBI came to the conclusion that the charge on the bank is important and a penalty needs to be imposed on it.

What will be the effect on the bank’s customers?
Let me tell you that if you also have money in this bank, then there will be no effect on them in any way. RBI has taken this action on the bank due to deficiencies in regulatory compliance. With this action, the customers of the bank will not have any problem in doing the transaction. He will be able to do his work as before. In such a situation, this action is not going to affect the money of the customers of this bank.

Let me tell you that some time ago, the Reserve Bank of India imposed a fine of Rs 5 lakh on a cooperative bank in Bihar. This penalty was imposed for not following the instructions issued on KYC (KYC) during demonetisation and the guidelines related to changing the rupee withdrawn from the currency. In November 2016, the government announced the removal of old 500 and 1,000 rupee notes from circulation. RBI had issued guidelines and deadline for exchange of notes.

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