The Reserve Bank of India imposed a penalty on four urban cooperative banks on Monday. These banks are National Co-operative Bank Ltd, Harij Nagrik Sahakari Bank Ltd, Co-operative Bank of Mehsana Ltd and Lalbaug Co-operative Bank Ltd. The total fine worth of Rs 12.50 lakh has been imposed on four cooperative banks.
The Reserve Bank of India (RBI) has imposed, a monetary penalty of Rs 1.00 lakh (Rupees One Lakh only) on the National Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts-Primary (Urban) Co-operative Banks’.
A monetary penalty of Rs 3.00 Lakh (Rupees Three Lakh only) has been imposed on the Harij Nagrik Sahakari Bank Ltd., Harij, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Cash Reserve Ratio (CRR)’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’, and ‘Interest Rate on Deposits – Directions, 2016’.
Besides, the RBI imposed a monetary penalty of Rs 3.50 Lakh (Rupees Three Lakh Fifty Thousand only) on the Co-operative Bank of Mehsana Ltd., Mehsana, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are Interested’ read with ‘Loans and Advances to Directors etc. – Directors as surety/guarantors – Clarification’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
A monetary penalty of Rs 5.00 lakh (Rupees Five Lakh only) was imposed on Lalbaug Co-operative Bank Ltd., Vadodara, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016’.
This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949.
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.
