Again on Wednesday, the Reserve Bank of India imposed monetary penalties on five cooperative banks. These banks are Mandi Urban Cooperative Bank, Howrah District Central Cooperative Bank, Standard Urban Cooperative Bank, Excellent Cooperative Bank, Rajapalayam Cooperative Urban Bank.
Reserve Bank of India imposed, a monetary penalty of Rs 6 lakh on the Mandi Urban Co-operative Bank Ltd., Mandi, Himachal Pradesh (the bank) for non-compliance with certain provisions of RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
Besides, a monetary penalty of Rs 1 lakh has been imposed on the Howrah District Central Co-operative Bank Ltd., Howrah (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Directions, 2016’
RBI also imposed a monetary penalty of Rs 50,000 on Standard Urban Co-operative Bank Ltd., Aurangabad (the bank), for contravention of provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act).
A monetary penalty of Rs 1 lakh imposed on Excellent Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act).
The Reserve Bank of India imposed a monetary penalty of Rs 75,000 on the Rajapalayam Co-operative Urban Bank Ltd., Rajapalayam, Tamil Nadu (the bank) for non-compliance with RBI directions on ‘Board of Directors – UCBs’ read with ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’ and ‘Exposure Norms and Statutory / Other Restrictions – UCBs’.
These penalties have been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A (1) (c) read with section 46(4)(i) and section 56 of the Banking Regulation Act, 1949.
On Tuesday, the Reserve Bank of India had 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 were Mathura District Cooperative Bank, Dindigul Urban Cooperative Bank, Chikkamagaluru District Cooperative Central Bank and Solapur Janata Sahakari Bank.