Soon after the scam of the PMC Bank jolted the nation, reports of violation of the RBI norms by urban cooperative banks attract media headlines as never before in the past.
It is also true that there are often reports of RBI imposing fines on urban cooperative banks but it happens rather rarely that three banks out of a motley of about 1500 are penalized within a day.
While the country was busy Tuesday celebrating the birth day of Milk Man of India Dr Verghese Kurien, who changed the lives of women folks through cooperatives in Gujarat and elseware, three UCBs came under RBI’s censure on the same day, underlining the irony of the situation.
The first in the list was Nesargi Urban Co-operative Bank on which the Reserve Bank of India imposed a monetary penalty for non-submission of the returns under Section 27(2) of the Banking Regulation Act, 1949 (AACS).
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank sought personal hearing. After considering the facts of the case and bank’s representation in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of penalty, a RBI release says.
Another bank in the list was Krishna Pattana Sahakar Bank Niyamitha, Shahpur. The Reserve Bank of India has imposed a monetary penalty precisely for the same reasons, Nesargi Urban Co-operative Bank was penalized.
The Show Cause Notice to the bank and subsequent personal hearing convinced the RBI that the violations were substantiated and warranted imposition of penalty.
The third UCB to fall under the RBI lens was Ron Taluka Primary Teachers’ Co-operative Credit Bank. Imposing the monetary fine the apex bank said that the UCB is guilty of non-submission of the returns under Section 27 (2) of the Banking Regulation Act, 1949 (AACS).
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank sought personal hearing. After considering the facts of the case and bank’s representation in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of penalty.
According to reports hundreds of banks have been penalized in the year 2019 alone. For the benefit of well-meaning co-operators and alerting the wrong-doers, Indian Cooperative has mostly been carrying such stories.