The Reserve Bank of India (RBI) has imposed monetary penalties on two cooperative banks for failing to comply with its regulatory directions. Madhya Pradesh-based Smriti Nagrik Sahakari Bank Maryadit faced a fine of Rs 2.5 lakh, while Batlagundu Cooperative Urban Bank Ltd from Tamil Nadu was penalised Rs 1 lakh.
RBI penalised Smriti Bank for deficiencies in implementing its cyber security framework for urban cooperative banks and for lapses in adhering to know-your-customer (KYC) norms. A statutory inspection revealed inadequate cyber security controls and delayed KYC updates for some customers.
Batlagundu Cooperative Urban Bank was fined for violating capital adequacy norms and supervisory action framework (SAF) instructions. RBI found the bank sanctioned high-risk loans while its capital adequacy ratio was below the mandated threshold and exceeded permissible exposure limits.
RBI stated that the penalties are based on regulatory non-compliance and do not reflect on the validity of customer-related transactions.
