The Reserve Bank of India imposed a monetary penalty worth Rs 39.30 lakh on five cooperative banks on Thursday. A heavy fine of Rs 23.30 lakh was imposed on Nagpur-based Shikshak Sahakari Bank.
Besides, the apex bank also extended the period of directions on Banaras Mercantile Cooperative Bank and Ajantha Urban Cooperative Bank for a further three months.
The Reserve Bank of India imposed a monetary penalty of Rs 23.30 lakh on Shikshak Sahakari Bank Limited, Nagpur for non-compliance with operational instructions issued by RBI, vide letter dated January 24, 2020, under the ‘Supervisory Action Framework for Primary (Urban) Co-operative Banks (UCBs)’.
A monetary penalty of Rs 5 lakh has been imposed on Adarsh Mahila Co-operative Bank Limited, Muzaffarnagar, Uttar Pradesh (the bank) for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’ and specific directions issued by RBI under the Supervisory Action Framework (SAF).
Similarly, a monetary penalty of Rs 5 lakh was imposed on Noble Co-operative Bank Limited, Noida, Uttar Pradesh (the bank) for non-compliance with the specific directions issued by RBI under the Supervisory Action Framework (SAF).
RBI imposed a monetary penalty of Rs 5 lakh on Solapur District Central Co-operative Bank Limited, Solapur, Maharashtra (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and the directions issued by RBI on the Depositor Education and Awareness Fund.
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Progressive Co-operative Bank Limited, Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory/Other Restrictions – UCBs’ and ‘Investments by Primary (Urban) Co-operative Banks’.
This penalty has been imposed in exercise of powers conferred on RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
This action is based on the deficiencies 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.
