A monetary penalty of Rs1lac, was imposed by Reserve Bank of India, on Shree Siddhivinayak Nagari Sahakari Bank Ltd., Raigad.
There were multiple failures by Shree Siddhivinayak Nagari Sahakari Bank Ltd., viz: –
01) for violation of Reserve Bank of India’s directive / guidelines on single party credit exposure loan to directors / their relatives / firms in which they are interested,
02) fraudulently created deposits,
03) fictitious credits from HO accounts to loan accounts
04) understatement of liabilities
05) non-adherence to KYC norms
06) failure in risk categorization of its customers.
A quick reading of the above shows that there are many novel thoughts adopted by Shree Siddhivinayak Nagari Sahakari Bank Ltd., in their functioning.
Of the 6, this 2 are completely new to me ‘fraudulently created deposits, fictitious credits from HO accounts to loan accounts ‘. It seems that still manual books of account are maintained in the cooperative bank, as otherwise it would be difficult to create fictitious deposits.
Well, as they say, Indian Jugaad has no boundaries! Which is the most innovative idea adopted by Shree Siddhivinayak Nagari Sahakari Bank Ltd?
Re-disseminated by Prashant n. Banker by daytime, blogger by night. Email me @ NSHANTIN (at) gmail
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