The Reserve Bank of India imposed a monetary penalty on four cooperative banks on Thursday on various acts of omission and commissions. The total fine on four UCBs imposed was worth Rs 6 lakh.
These banks are Tapindu Urban Co-operative Bank Limited, Patna, Islampur Urban Co-operative Bank Limited, Islampur, (Maharashtra), Mangal Co-operative Bank Limited, Mumbai and Mahabaleshwar Urban Co-operative Bank Limited., Mahabaleshwar.
The Reserve Bank of India (RBI) has, by an order dated August 03, 2023 imposed a monetary penalty of Rs 1.00 lakh (Rupees One lakh only) on Mangal Co-operative Bank Limited, Mumbai (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts’ and ‘Know Your Customer (KYC)’.
Besides, Rs 2.00 lakh (Rupees Two lakh only) fine has been imposed on Islampur Urban Co-operative Bank Limited, Islampur, (Maharashtra) (the bank) for non-compliance with provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’ and ‘Maintenance of Deposit Accounts-UCBs’.
Similarly, a monetary penalty of Rs 1,00,000/- (Rupees One lakh only) has been imposed on the Tapindu Urban Co-operative Bank Limited, Patna (the bank) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.00 lakh (Rupees Two lakh only) on the Mahabaleshwar Urban Co-operative Bank Limited., Mahabaleshwar, Maharashtra (the bank) for contravention of provisions of Section 20A read with Section 56 of the Banking Regulation Act, 1949 (BR Act), specific directions issued by RBI under Supervisory Action Framework (SAF), and directions issued by RBI on ‘Maintenance of Deposit Accounts’ and ‘Know Your Customer (KYC)’.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
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, reads a RBI press release.