The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on sixteen (16) Central Co-operative Banks. These banks belong to various states such as Bihar, Jharkhand, Odisha, Rajasthan, Punjab and Haryana.
A press release from the apex bank said that these banks have defaulted on issues of non-adherence to Know Your Customer (KYC) norms and non-observance of Anti-Money Laundering (AML) standards.
There are three banks from Jharkhand in the defaulter’s list. These are Dumka Central Co-operative Bank, Dhanbad Central Co-operative Bank and Gumla Simdega Central Co-operative Bank. There is one bank from Bihar- the Gopalganj Central Co-operative Bank that figures in the list.
There are two co-op banks from Haryana- Rewari Central Co-operative Bank and Jind Central Co-operative Bank. Mansa Central Co-operative Bank based in Mansa district of Punjab also figures in the list.
Rajasthan tops the list with about five co-op banks of the state under RBI’s scalpel. They are Ajmer Central Co-operative Bank, Hanumangarh Kendriya Sahakari Bank, Central Co-operative Bank, Bikaner, Sirohi Central Co-operative Bank and the Central Co-operative Bank of Ajmer.
Odisha, which has its four district co-operative banks under RBI’s axe is the second topper in the defaulter’s list. These are Boudh Co-operative Central Bank, Bhawanipatna Central Co-operative Bank, Cuttack Central Co-operative Bank and the Sambalpur District Co-operative Central Bank.
The Reserve Bank of India had issued a show cause notice to the banks in response to which the banks submitted a written reply. After considering the facts of the cases, the banks’ replies and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.