The Reserve Bank of India has imposed monetary penalties on five cooperative banks in Southern India, including a substantial fine of Rs 5 lakh on the Karnataka based Mahabaleshwar Cooperative Bank for non-compliance with RBI directives regarding loans and advances to directors.
Issuing a press release in this connection on Thursday, in addition to Mahabaleshwar Cooperative Bank RBI imposed fine on other urban cooperative banks including Manvi Pattana Souharda Sahakari Bank, Nilambur Cooperative Urban Bank, Srirangam Cooperative Bank and Sree Charan Souharda Cooperative Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 25,000 on Manvi Pattana Souharda Sahakari Bank Niyamitha, Manvi (the bank) for non-compliance with specific directions issued by RBI under Supervisory Action Framework (SAF).
A monetary penalty of Rs 50,000 has been imposed on the Nilambur Co-operative Urban Bank Ltd., Kerala (the bank) for non-compliance with specific directions issued by RBI under Supervisory Action Framework (SAF).
Besides, the RBI imposed a monetary penalty of Rs 1,50,000 on the Srirangam Co-operative Urban Bank Ltd., Tamil Nadu (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms /concerns in which they are interested’ and specific directions issued under ‘Supervisory Action Framework’ (SAF).
And, a monetary penalty of Rs 2.00 lakh has been imposed on Sree Charan Souhardha Co-operative Bank Ltd., Bengaluru (the bank) for non-compliance with certain directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’ and specific directions issued under ‘Supervisory Action Framework’ (SAF).
These penalties have been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
