The Reserve Bank imposed monetary penalties on four cooperative banks for breaching the RBI rules and regulations on Thursday. The banks included are Nashik Jilha Sarkari & Parishad Karmachari Sahakari Bank, Shivpuri Nagrik Sahakari Bank, Janata Sahakari Bank, Amravati and Shirpur Peoples Cooperative Bank.
The RBI imposed a monetary penalty of Rs 1 lakh on Nashik Zilha Sarkari & Parishad Karmachari Sahakari Bank Niyamit, Nashik (Maharashtra) (the bank) for non-compliance with directions issued by RBI on Know Your Customer (KYC).
A monetary penalty of Rs 1 lakh has been imposed on Nagrik Sahakari Bank Maryadit, Shivpuri (Madhya Pradesh) (the bank) for non-compliance with directions issued by the RBI on Exposure Norms & Statutory/Other Restrictions on UCBs and Know Your Customer (KYC).
Similarly, the RBI imposed a monetary penalty of Rs 50,000 on Janata Sahakari Bank Limited, Amravati (the bank) for contravention of provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act).
Besides, a monetary penalty of Rs 2 lakh on the Shirpur Peoples Co-operative Bank Ltd., Dhule (Maharashtra) (the bank) for non-compliance with directions issued by the RBI on Exposure Norms & Statutory Other Restrictions- UCBs and Board of Directors-UCBs.
These penalties have been imposed in exercise of powers vested in the RBI under the provisions of section 47A (1)(c) read with sections 46 (4)(i) and 56 of the Banking Regulation Act, 1949.
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.
On Monday, the Reserve Bank of India imposed monetary penalties on five cooperative banks which were Shahdol Jila Sahakari Kendriya Bank, Krushiseva Urban Cooperative Bank, Bhilai Nagarik Sahakari Bank, Dr Panjabrao Deshmukh Urban Cooperative Bank and Mula Sahakari Bank.