The Reserve Bank of India imposed monetary penalties on five cooperative banks worth Rs 89.95 lakh. A hefty fine has been imposed on the Nashik based Janalaxmi Cooperative Bank.
The other banks which were fined on Tuesday are Mathura District Cooperative Bank, Dindigul Urban Cooperative Bank, Chikkamagaluru District Cooperative Central Bank and Solapur Janata Sahakari Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 59.90 lakh on the Janalaxmi Co-operative Bank Limited, Nashik (the bank) for non-compliance with certain directions issued by RBI on ‘Constitution of Board of Management (BoM) in Primary (Urban) Co-operative Banks (UCBs)’, ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and specific order issued by RBI under ‘Supervisory Action Framework for Primary (Urban) Co-operative Banks (UCBs)’.
Besides, RBI imposed a monetary penalty of Rs 28.30 lakh on Solapur Janata Sahakari Bank Limited, Solapur (the bank), for non-compliance with certain provisions of RBI directions on ‘Constitution of Board of Management in Primary (Urban) Co-operative Banks’ and prohibitory order/direction issued under Supervisory Action Framework (SAF).
A monetary penalty of Rs 1 lakh has been imposed on Mathura Jilla Sahkari Bank Ltd, Uttar Pradesh (the bank) for non-compliance with provisions of Section 9 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 25,000 on the Dindigul Urban Co-operative Bank Ltd., Dindigul, Tamil Nadu (the bank) for non-compliance with certain provisions of RBI directions on ‘Exposure Norms and Statutory/ Other Restrictions – UCBs’.
A monetary penalty of Rs 50,000 has been imposed on Chikkamagaluru District Cooperative Central Bank Ltd., Chikkamagaluru, Karnataka (the bank) for non-compliance with the directions issued by National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds – Guidelines for Classification, Reporting and Monitoring’.
This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4) (i) and 56 of the Banking Regulation Act, 1949.
It may be necessary to know that in the current financial year till 29th February 2024, RBI has cancelled the banking license of 24 urban cooperative banks.
RBI imposed 176 penalties worth Rs 14.04 crore on cooperative banks during the 2022-23 financial year.