The Reserve Bank of India has imposed monetary penalties on five cooperative banks, including Nagnath Urban Cooperative Bank, Urban Cooperative Bank, Mainpuri, Shrikrishna Cooperative Bank, Alibag Cooperative Urban Bank, and Hindustan Cooperative Bank.
A monetary penalty of Rs 5.00 lakh was imposed on Urban Co-operative Bank Ltd., Mainpuri, for non-compliance with RBI directions regarding ‘Investments by Primary (Urban) Co-operative Banks.’
Nagnath Urban Co-operative Bank Limited, Hingoli, Maharashtra, was fined Rs 1 lakh for violating the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act).
Shrikrishna Co-operative Bank Limited, Umrer, Maharashtra, received a penalty of Rs 2.08 lakh for non-compliance with RBI directions on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested.’
Alibag Co-operative Urban Bank Limited, Alibag, was fined Rs 2 lakh for failing to comply with RBI directions on ‘Management of Advances-UCBs.’
Hindusthan Co-operative Bank Limited, Mumbai, was penalized Rs 4.00 lakh for non-compliance with RBI directions on ‘Exposure Norms and Statutory/Other Restrictions – UCBs,’ ‘Limits on exposure to single and group borrowers/parties and large exposures -UCBs,’ and ‘Know Your Customer (KYC) Norms.’
These penalties were imposed under the powers vested in RBI, conferred by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
During the 2023-24 financial year, the Reserve Bank of India imposed 215 penalties totaling Rs 12.07 crore on cooperative banks for various acts of omission and commission. In the 2022-23 financial year, the RBI imposed 176 penalties worth Rs 14.04 crore.
