The Reserve Bank of India (RBI) has imposed penalties on four cooperative banks for non-compliance with its directives. A major fine of Rs 4.20 lakh has been levied on Madhya Pradesh-based Laxmibai Mahila Nagrik Sahakari Bank for violating RBI’s guidelines on ‘Loans and Advances to Directors.’
Additionally, the RBI has penalized three other banks: Muzaffarpur Central Cooperative Bank, Dhule and Nandurbar District Central Cooperative Bank, and Shree Balaji Urban Cooperative Bank.
The Muzaffarpur Central Cooperative Bank Ltd. has been fined Rs 1 lakh for failing to comply with RBI’s ‘Know Your Customer’ (KYC) norms.
Meanwhile, the Dhule and Nandurbar District Central Cooperative Bank Ltd., Maharashtra, has been penalized Rs 25,000 for not adhering to RBI’s directive on ‘Membership of Credit Information Companies (CICs) by Cooperative Banks.’
Furthermore, the RBI has imposed a monetary penalty of Rs 1.10 lakh on Shree Balaji Urban Cooperative Bank Ltd., Satna, Madhya Pradesh. The fine was issued due to non-compliance with RBI’s guidelines on ‘Priority Sector Lending (PSL) – Targets and Classification’ and failure to contribute to the Micro and Small Enterprises (MSE) Refinance Fund due to shortfall in PSL achievement.
