Last week the Reserve Bank of India imposed penalties on two urban cooperative banks namely Sarvodaya Sahakari Bank based in Surat (Gujarat) and Kokan Prant Sahakari Bank based in Mumbai.
Sarvodaya Sahakari Bank was penalized for violation of RBI instructions by making donation in excess of prescribed ceiling.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. Bur the apex bank came to the conclusion that the violation was substantiated and warranted imposition of penalty.
In the case of Kokan Prant Sahakari Bank RBI informed the public through a press release that validity period of directions imposed on it has been extended further for a period of three months i.e. from August 07, 2013 to November 06, 2013.
The other terms and conditions remain unchanged. A copy of the directive dated July 29, 2013 notifying the above modification is displayed at the bank’s premises for the perusal of public.
The aforesaid modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank, RBI release cautions.
