Cooperative bank to pay penalty of Rs 5 lakh imposed by RBI

Sonepat Urban Cooperative Bank has to pay a penalty of Rs 5 lakh for violating norms of the RBI. The penalty has been imposed by the Reserve Bank of India (RBI) for selling-cum-releasing the SLR investment bonds to the customers in violation of the norms laid down by the RBI in this regard.

As per information provided by official sources RBI has also issued a show-cause notice to the bank in which it has been asked as to why action should not be taken against the officials on the issue as they had violated the rules and norms laid down by it.

According to official sources the cooperative banks are free to sell of release only 10 per cent bonds the limit fixed by the RBI but the bank has violated the rules and norms of the RBI by selling or releasing 15 per cent bonds.