The Reserve Bank of India imposed penalties on eight co-op banks on various acts of omission and commission on Monday. The highest penalty imposed was Rs 48.00 lakh on SBPP Co-operative Bank Limited, Killa Pardi, Gujarat.
SBPP Co-operative Bank was faulted for non-compliance with the directions issued by RBI on ‘Interest Rate on Deposits’ and ‘Know Your Customer (KYC)’. This penalty has been imposed due to the failure of the bank to adhere to the directions issued by RBI, said RBI in a release.
Hyderabad based Agrasen Co-operative Urban Bank was fined a monetary penalty of Rs 12.00 lakh for non-adherence and violation of directions issued on ‘Income Recognition, Asset Classification, Provisioning’ and ‘Exposure norms/ Statutory / Other Restrictions-UCBs.’
Tiruvannamalai Co-operative Urban Bank Ltd, Thiruvannamalai, Tamil Nadu was fined Rs 2 lac for non-adherence and violation of directions issued under Exposure Norms and Statutory / Other Restrictions – UCBs.
RBI has imposed a monetary penalty of Rs 5.00 lakh on The Nilambur Co-operative Urban Bank Ltd., No.F 1043, Nilambur, Malappuram District, Kerala for contravention of the directions issued by RBI on “Income Recognition and Asset Classification” and on “Management of Advances – UCBs”.
RBI has imposed a monetary penalty of Rs 5.00 lakh (on The People’s Urban Co-operative Bank Ltd., Tripunithura, Ernakulam, Kerala for non-adherence / violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs.
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on The Tadpatri Cooperative Town Bank Ltd., Anantapur District, Andhra Pradesh for non-adherence of directions issued on i) prohibition of loans and advances to Directors and their relatives and the firms / concerns in which they were interested ii) Income Recognition, Asset Classification, Provisioning and Other related Matter-UCBs.
The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on The Krishna District Cooperative Central Bank Ltd., Machilipatnam, Krishna District, Andhra Pradesh (the bank) for non-adherence / violation of certain directions issued by RBI contained in the Circular on ‘Income Recognition, Asset Classification and Provisioning’ and NABARD circular on ‘Frauds-Guidelines for classification, reporting and monitoring of Frauds’.
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Vadodara for contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’, and non-compliance with specific directions.
This action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarifies RBI.
