The Reserve Bank of India imposed a monetary penalty on several cooperative banks for breaching the RBI regulatory norms and extended directions on a few UCBs this week.
On Monday, the RBI imposed a penalty on the Shri Laxmi Sahakari Bank Ltd., Mhaisa, Bajirao Appa Sahakari Bank Ltd., Ankalkhop, Kokan Mercantile Co-operative Bank Limited., Mumbai and Sawantwadi Urban Co-operative Bank Ltd., Sawantwadi
The apex bank imposed a monetary penalty of Rs 1.00 lakh (Rupees One lakh only) on Shri Laxmi Sahakari Bank Ltd., Mhaisal (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customers’ (KYC).
Similarly, a monetary penalty of Rs 2.00 lakh (Rupees Two lakh only) has been imposed on Bajirao Appa Sahakari Bank Ltd., Ankalkhop (the bank) for non-compliance with the directions issued by the RBI on ‘Investments by Primary (Urban) Co-operative Banks’ and ‘Know Your Customers’ (KYC).
Besides, the Reserve Bank of India (RBI) has, by an order dated May 29, 2023 imposed a monetary penalty of Rs 1.00 lakh (Rupees One lakh only) on Kokan Mercantile Co-operative Bank Limited., Mumbai (the bank) for contravention of directions issued by the RBI on Maintenance of Deposit Accounts.
The RBI imposed a monetary penalty of Rs 3.00 lakh (Rupees Three lakh only) on Sawantwadi Urban Co-operative Bank Ltd., Sawantwadi (the bank) for contravention of directions contained in the Supervisory Action Framework (SAF) issued by the RBI under section 36 (1) read with section 56 of the Banking Regulation Act, 1949 (the Act).
This penalty has been imposed in exercise of powers vested in the 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 (the Act), taking into account the failure of the bank to adhere to the aforesaid directions issued by the RBI.
The banks the RBI extended directions on included, Sumerpur Mercantile Urban Co-operative Bank Ltd, Sumerpur, Rajasthan and Nagar Urban Co-operative Bank Ltd., Ahmednagar.
The directions on the Sumerpur Mercantile Urban Co-operative Bank Limited, Sumerpur, Rajasthan have been extended for a further period of three months from June 07, 2023 to September 06, 2023, vide Directive dated June 06, 2023, subject to review.
Whereas, the directions on the Nagar Urban Co-operative Bank Ltd., Ahmednagar have been extended for a further period of three months till September 06, 2023.
All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated June 06, 2023 notifying the above extension is displayed at the bank’s premises for the perusal of the public.