The Reserve Bank of India imposed a penalty on three cooperative banks on Monday. These banks are Kanyakumari District Central Co-operative Bank Ltd., Nagercoil, Tamil Nadu, Krishna Sahakari Bank Ltd., Satara and National Cooperative Bank Ltd., Mumbai, Maharashtra.
The Reserve Bank of India has imposed a monetary penalty of Rs 7.50 lakh on the Kanyakumari District Central Co-operative Bank Ltd for non-compliance with directions issued by RBI on transfer of eligible funds to Depositor Education and Awareness Fund (DEA Fund) constituted as per section 26A read with section 56 of the Banking Regulation Act, 1949 (AACS) and for non-adherence with Know Your Customer (KYC) Direction, 2016.
Similarly, the apex bank imposed Rs 1.00 lakh (Rupees One lakh only) on Krishna Sahakari Bank Ltd., Satara (the bank) for contravention of directions issued by RBI on Maintenance of Deposit Accounts.
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 (the Act), taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
And, Rs 1.00 lakh (Rupees One lakh only) penalty has been imposed on the National Cooperative Bank Ltd., Mumbai (the bank) for contravention of directions issued by RBI on Maintenance of Deposit Accounts.
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.
Last month in April, four Co-op Banks were penalized including Tamil Nadu State Apex Co-operative Bank, Bombay Mercantile Co-operative Bank, Pune based Janata Sahakari Bank and Rajasthan based Baran Nagrik Sahkari Bank. UCBs on which RBI Directions will continue are United India Co-operative Bank Limited, Nagina, Bijnor (U.P.) and The Suri Friends’ Union Co-operative Bank Limited, Suri (West Bengal).
Similarly, in March the Reserve Bank of India had imposed a monetary penalty on six cooperative banks worth Rs 12.20 lakh for various acts of omission and commission. The banks included Aligarh Zila Sahkari Bank Ltd., Aligarh, Uttar Pradesh, Delhi Nagrik Sehkari Bank Limited, New Delhi, Ganesh Sahakari Bank Ltd., Navi Sangvi, Pune, Vyapari Sahakari Bank Maryadit, Solapur (Maharashtra), Mehsana District Central Co-operative Bank Ltd., Mehsana (Gujarat) and Kolkata Police Co-operative Bank Ltd., Kolkata, West Bengal.