Come Monday and RBI comes out with a long list of defaulting co-op banks. This Monday, however, this list is rather longish with more than thirteen banks including UCBs and DCCBs falling under the RBI lens. Most of them have been penalized for non-adherence with KYC norms.
The Reserve Bank of India imposed a monetary penalty of Rs 1.50 Lakh on Patan Nagarik Sahakari Bank in Gujarat for contravention of directions issued by RBI on ‘Maintenance of Statutory Reserves – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks’.
RBI imposed a monetary penalty of Rs 1.50 lakh on The Tura Urban Cooperative Bank Ltd., Meghalaya for non-adherence and violation of specific directions issued under Supervisory Action Framework (SAF) and certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
Kolkata based Eastern & North-East Frontier Railway Co-operative Bank was fined Rs 1.00 lakh for non-adherence with (i) specific directions issued under Supervisory Action Framework (SAF) and (ii) certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
RBl imposed a penalty of Rs 75,000/ on Nagrik Sahakari Bank Maryadit, Raigarh, Chhattisgarh for contravention of Directions on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC).
Shri Kanyaka Nagari Sahakari Bank Ltd., Chandrapur (Maharashtra) was fined a penalty of Rs 4.00 lakh for contravention of directions on Know Your Customer (KYC). RBl imposed a penalty of Rs 2.00 lakh on Indore Premier Co-operative Bank for contravention of provisions of section 19 read with section 56 of the Banking Regulation Act, 1949 (the Act) and directions issued by RBI.
Nagrik Sahakari Bank Maryadit, Jagdalpur, Chhattisgarh was fined Rs 1.25 lakh for non-adherence with the Directions on Board of Directors, Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC). RBl imposed a monetary penalty of ?1.25 lakh on Jijau Commercial Co-operative Bank for contravention of directions on KYC and opening of on-site ATM.
The Reserve Bank of India fined Rs 1.00 lakh to Jila Sahakari Kendriya Bank Maryadit, Chhatarpur (Madhya Pradesh) for contravention of the provisions of the Banking Regulation Act, 1949 and directions issued by the Reserve Bank of India (RBI) on Know Your Customer (KYC).
The Vaidyanath Urban Co-operative Bank Ltd., Beed (Maharashtra) was fined Rs 2.50 lac for contravention of/non-compliance with Know Your Customer (KYC). RBl imposed a fine of Rs 50,000/ on Jila Sahakari Kendriya Bank Maryadit, Bilaspur (C.G.) for contravention of provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by NABARD.
Jila Sahakari Kendriya Bank Maryadit, Shahdol (M.P.) was fined Rs 50,000 for contravention of/non-compliance with the provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by NABARD.
RBI imposed a monetary penalty of Rs 2 lakh on Wai Urban Co-operative Bank Ltd., Satara for non-compliance with the directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters’ (IRAC norms).
RBI’s action is based on the 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, says the regulator.