The Reserve Bank of India (RBI) announced penalties on two co-operative banks, The Bapunagar Mahila Co-operative Bank and The Sutex Co-operative Bank.
The RBI imposed a Rs 5 lakh penalty on The Sutex Co-operative Bank and a Rs 2 lakh penalty on The Bapunagar Mahila Co-operative Bank for rule violations.
The penalties were imposed due to breaches in prudential inter-bank exposure limits by The Bapunagar Mahila Co-operative Bank and non-compliance with Vulnerability Assessment (VA) and Penetration Testing (PT) of its internet-facing mobile application by The Sutex Co-operative Bank, along with levying penal charges for non-maintenance of minimum balances in inoperative accounts.
A BOTTOM LINE
The RBI keeps an eye on all banks in India, including co-operative banks. By taking action when banks break the rules, the RBI helps make sure the banking system is working well and protects people’s savings and deposits.
