The RBI has imposed penalties on several urban co-op banks for varying amounts from Rs 55 lac to Rs 1 lac for their violations of regulator’s norms and master directions. The highest penalty was imposed on Visakhapatnam Co-operative Bank and the lowest on the Kendrapara Urban Cooperative Bank
The Reserve Bank of India imposed a monetary penalty of Rs 55.00 lakh on the Visakhapatnam Co-operative Bank Ltd, Visakhapatnam, Andhra Pradesh for non-adherence/violation of directions issued under (i) Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and (ii) Finance for Housing Schemes-UCBs.
The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh on the National Urban Co-operative Bank Limited, Pratapgarh, Uttar Pradesh for non-compliance with certain directions issued by RBI contained in the Master Circular of 2015. There were more than 8 banks which were fined by the RBI on the same date. The UCB was penalized for violation of ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.
Another bank fined by the Reserve Bank of India is Kendrapara Urban Cooperative Bank. The UCB has been slapped with a monetary penalty of Rs 1.00 lakh (for contravention of/non-compliance with the directions issued by RBI on Know Your Customer (KYC).
Kakinada Co-operative Town Bank Ltd, Kakinada, East Godavari District, Andhra Pradesh also fell under RBI lens which imposed a monetary penalty of Rs 10.00 lakh for non-adherence / violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and Establishment of Depositor Education and Awareness Fund.
A penalty of Rs 10.00 lakh was also imposed on The Nellore Co-operative Urban Bank Limited, Gandhi Nagar, Nellore District, Andhra Pradesh. The UCB was found guilty of non-adherence / violation of directions issued under i) prohibition of loans and advances to Directors and their Relatives and Firms / Concerns in which they are interested– UCBs and ii) Exposure Norms and Statutory / Other Restrictions-UCBs.
Hyderabad based The Darussalam Co-operative Urban Bank was imposed a penalty of Rs 10.00 lakh for non-adherence / violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and Board of Directors-UCBs.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.00 lakh on The Ottapalam Co-operative Urban Bank Ltd., No.F. 1647, Ottapalam, Palakkad District, Kerala. The UCB was fined for non-adherence / violation of directions issued under i) Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and ii) Know Your Customer (KYC) Guidelines – Primary (Urban) Co-operative Banks.
The Reserve Bank of India (RBI) has imposed, by an order dated August 22, 2022, a monetary penalty of Rs 10.00 lakh (Rupees Ten lakh only) on Bharat Heavy Electricals Employees’ Co-operative Bank Limited, Kailasapuram, Tiruchirappalli, Tamil Nadu. The UCB was found gulty of non-adherence/violation of directions issued under Exposure Norms and Statutory/Other Restrictions – UCBs.
This 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 bank with its customers.