The Reserve Bank of India imposed penalties on three urban cooperative banks as well as extended the period of direction on two cooperative banks for three months on Tuesday.
The RBI fined Noida Commercial Cooperative Bank, Bhadohi Urban Cooperative Bank and Urban Cooperative Bank, Budaun. It extended the directions on Shimsha Sahakara Bank and HCBL Cooperative Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 2.50 lakh on Noida Commercial Co-operative Bank Ltd., Ghaziabad, Uttar Pradesh.
It has been imposed for contravention of the provisions of section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act) and 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 ‘Master Circular on Frauds – Classification and Reporting’.
A monetary penalty of Rs 2 lakh has been imposed on the Bhadohi Urban Co-operative Bank Ltd., Bhadohi, Uttar Pradesh (the bank) for contravention of the provisions of section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act).
Besides, the RBI imposed a monetary penalty of Rs 7.00 lakh on the Urban Co-operative Bank Ltd., Budaun (the bank) for contravention of the provisions of section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act), for non-compliance with the specific directions issued by the RBI under Supervisory Action Framework (SAF) and with the direction issued by RBI on ‘Investments by Primary (Urban) Co-operative Banks’.
This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
The period of directions on Shimsha Sahakara Bank and HCBL Cooperative Bank has been extended for a further period of three months from the close of business on May 24, 2024 to close of business on August 24, 2024, subject to review.
“The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank”, reads a RBI press release.
