Eight urban cooperative banks from across the country were penalized by the RBI last week on various acts of omission and commission. The penalties varied from a highest of Rs 4 lac to a lowest of Rs 25 thousand.
In all the cases, the RBI has clarified that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with its customers.
The Reserve Bank of India has imposed a monetary penalty of Rs 1.00 lakh (Rupees One lakh only) on Jila Sahakari Kendriya Bank Maryadit, Narsinghpur (M.P.) for contravention of/ non-compliance with the provisions of the Banking Regulation Act, 1949 (the Act) and the Depositor Education and Awareness Fund Scheme, 2014 (the Scheme).
The Reserve Bank of India has imposed, by an order dated March 11, 2022, a monetary penalty of Rs 50,000 (Rupees Fifty Thousand only) on The Amravati Merchants’ Co-operative Bank Ltd., Amravati for contravention of/ non-compliance with the directions issued by RBI to Urban Cooperative Banks on Frauds – Classification and Reporting.
RBl has imposed, by an order dated March 09, 2022, a monetary penalty of Rs 25,000 (Rupees Twenty-Five Thousand only) on The Faiz Mercantile Co-operative Bank Ltd., Nasik for contravention of/ non-adherence with the Directions issued by RBI to Urban Co-operative Banks on Board of Directors and Exposure Norms & Statutory/ Other Restrictions-UCBs.
The Reserve Bank of India has imposed, by an order dated March 08, 2022, a monetary penalty of Rs 4.00 lakh (Rupees Four lakhs only) on The Nabapalli Cooperative Bank Limited, Barasat, 24 Paraganas (N), West Bengal for contravention of/non-adherence to directions issued under ‘Exposure Norms and Statutory/Other Restrictions – UCBs’.
RBI imposed a monetary penalty of Rs 2.00 lakh (Rupees Two lakhs only) on The Manipur Women’s Cooperative Bank Limited, Paona Bazar, Imphal, Manipur for contravention of/non-adherence to directions issued under ‘Exposure Norms and Statutory/Other Restrictions – UCBs’.
The Reserve Bank of India has imposed, by an order dated March 09, 2022, a monetary penalty of Rs 1.00 lakh on the United India Co-operative Bank Limited, Nagina, UP (the bank) for contravention of section 20 and 35A read with section 56 of the Banking Regulation Act, 1949.
RBI imposed a monetary penalty of Rs 3.00 lakh on The Baghat Urban Co-operative Bank Limited, Solan, HP for contravention of section 36 (1) read with section 56 of the Banking Regulation Act, 1949 as the bank failed to adhere to specific directions issued to it by RBI under Supervisory Action Framework (SAF).
The Reserve Bank of India (RBI) has, by an Order dated March 07, 2022, imposed a monetary penalty of Rs 1.00 lakh (Rupees one lakh only) on The Navnirman Co-operative Bank Ltd., Ahmedabad (Gujarat) for contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’ and ‘Loans and advances to directors etc- directors as surety/guarantors- Clarification-UCBs’.
After considering the bank’s replies, RBI came to the conclusion that the aforesaid charge of non-compliance with the provisions of the Act and RBI directions was substantiated and warranted imposition of monetary penalty, RBI says.
