The Reserve Bank of India (RBI) is constantly taking strict steps to make the banking system strong and transparent. In this series, RBI has fined Nainital Bank, Ujjivan Small Finance Bank and Shriram Finance due to violation of the rules. In addition, the board of directors of the New India Co-operative Bank in Mumbai has been dissolved.

Nainital Bank and Ujjivan Small Finance Bank fined heavy

According to RBI, Nainital Bank Limited has been fined Rs 61.40 lakh and Ujjivan Small Finance Bank for violation of interest rate and customer service rules.

Action on Shri Ram Finance also

RBI has also imposed a fine of Rs 5.80 lakh on non-banking financial institution Shriram Finance. This has been deployed due to non -compliance of KYC rules and credit reporting guidelines.

stock market crash

• Ujjivan Small Finance Bank shares recorded a decline of 1.27%, leading to its price to Rs 33.48.
• In January, it had fallen to a level of Rs 30.85, which was the lowest level of 52 weeks.

Strict steps on New India Co-operative Bank

The RBI has dissolved its board of directors in view of the poor financial operations of the New India Co-operative Bank. Also, the bank has been banned for six months on the release of new loans and withdrawal by customers.

Crowd in bank branches increased

After this decision, the customers panicked and started reaching the bank branches. The New India Co-operative Bank has 28 branches, most of which are located in Mumbai.

RBI's strictness continues

RBI is constantly monitoring the financial status and regulatory compliance of banks. It is clear from the recent fines and restrictions that strict action will be taken on irresponsible banking operations.