“RBI has imposed a monetary penalty of Rs 5 lakh on Kodagu District Cooperative Central Bank, Madikeri… For violating regulatory guidelines issued by the RBI on non-SLR (Statutory Liquidity Ratio) investments,” the apex bank said in a statement.
It also announced a penalty of Rs 1 lakh on the Mehsana Urban Cooperative Bank for guidelines relating to admission of co-operative societies, besides customer identification norms and other violations.
The RBI had issued a show cause notice to both the bank, in response to which they had submitted written replies.
“After considering the facts… RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty,” it said.
The central bank had penalised as many as 48 small banks during the January-June period of this year, for lapses in implementing customer identification norms and various other violations.