The incidents of RBI penalizing co-op banks have continued in the new year too with RBI imposing penalties on four UCBs on various acts of omission and commissions. These banks are Satara based Col. R.D.Nikam Sainik Sahakari Bank, Pune based Sharad Sahakari Bank, Mumbai based Sahebrao Deshmukh Cooperative Bank and Solan based (HP) Baghat Urban Co-operative Bank.
RBI imposed a monetary penalty of Rs 8.00 lakh on The Baghat Urban Co-operative Bank Limited, Solan, Himachal Pradesh. The UCB was found guilty of contravention of section 35A and section 36 (1) (a) read with section 56 of the Banking Regulation Act, 1949 as the bank failed to comply with specific directions issued to it by RBI under Supervisory Action Framework (SAF).
A penalty of Rs 6 lakh was imposed on Sharad Sahakari Bank. Pune based UCB was found violating RBI’s norms on ‘Know Your Customers’ and ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in RBI conferred under section 47 A (1) (c) read with sections 46 (4) (i) and 56 of Banking Regulation Act, 1949 (BR Act), says RBI.
The Reserve Bank of India (RBI) has, by an order dated December 28, 2022, imposed a monetary penalty of ?1.00 lakh (Rupees One lakh only) on Col. R.D.Nikam Sainik Sahakari Bank Ltd., Satara (the bank) for contravention of Section 26-A read with section 56 of the Banking Regulation Act, 1949 (the Act) and the Depositor Education and Awareness Fund Scheme, 2014.
The Reserve Bank of India (RBI) has, by an order dated December 28, 2022, imposed a monetary penalty of Rs 1.00 lakh (Rupees One lakh only) on The Sahebrao Deshmukh Cooperative Bank Ltd., Mumbai (the bank) for non-compliance with the directions issued by RBI on ‘Frauds monitoring and reporting mechanism’.
Based on the RBI inspection, notices were issued to the banks advising it to show cause as to why penalty should not be imposed for non-compliance with and contravention of the provisions of the Act and the directions issued under the Act, as stated therein.
After considering the bank’s written reply to the notices, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.
It bears recall that RBI punished nearly 180 banks in 2022 for violating regulatory guidelines, reports Outlook. This is the largest number of penalties issued by the apex bank since it assumed supervisory powers over erring cooperative banks two years ago.