The Reserve Bank of India has imposed monetary penalties on four banks which included Mahesh Urban Co-operative Bank, The Nanded Merchant’s Co-operative Bank, Andarsul Urban Co-operative Bank and Jila Sahakari Kendriya Bank Maryadit, Shahdol.
RBI imposed Rs 1.00 lakh on Mahesh Urban Co-operative Bank Ltd., Ahmedpur, Maharashtra for contravention of Directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions-UCBs.
The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, that the bank had not adhered to prudential inter-bank (Gross) exposure limit in contravention of/ non-compliance with the directions issued by RBI on Exposure Norms & Statutory/ Other Restrictions-UCBs.
The Nanded Merchant’s Co-operative was penalized Rs 50k for non-compliance with directions issued by RBI on Exposure Norms and Statutory/Other Restrictions on UCBs.
After considering the bank’s replies and oral submissions made during personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.
The Reserve Bank of India imposed Rs 1.50 lakh penalty on Andarsul Urban Co-operative Bank Ltd., Andarsul (Maharashtra). The UCB was found guilty of non-adherence with the Directions issued by RBI to Urban Co-operative Banks on Board of Directors and Exposure Norms & Statutory/ Other Restrictions-UCBs.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
Rs 1.00 lakh was imposed on Jila Sahakari Kendriya Bank Maryadit, Shahdol (M.P.) by the RBI. The Bank was guilty of non-compliance with the provisions of the Banking Regulation Act 1949 (the Act), the Depositor Education and Awareness Fund Scheme, 2014 (the Scheme) and directions issued by the RBI on Know Your Customer (KYC).
In a press release in all the above cases, RBI clarified that the 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.