The Reserve Bank of India imposed a penalty on thirteen urban cooperative banks in a period of less than seven days. It has also extended a period of directions on New Delhi based Ramgarhia Cooperative Bank cooperative bank simultaneously.
The banks on which RBI imposed a penalty included, Santragachi Co-operative Bank Ltd., West Bengal, Vidyasagar Central Co-operative Bank Limited, Midnapore, West Bengal, Karnavati Co-operative Bank Ltd., Ahmedabad, Gujarat, Gandevi People’s Co-operative Bank Ltd., Navsari, Gujarat, T SBPP Co-operative Bank Ltd, The Sahayadri Sahakari Bank Ltd, Rahimatpur Sahakari Bank Ltd, The Gadhinglaj Urban Co-operative Bank Ltd and The Kalyan Janata Sahakari Bank Ltd.
Besides, RBI extended the direction of period on New Delhi based Ramgarhia Cooperative Bank till January 08, 2024, subject to review.
The Reserve Bank of India imposed a penalty of Rs 1.00 Lakh on The Santragachi Co-operative Bank Ltd., West Bengal for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. Similarly, a monetary penalty of Rs 1.50 Lakh has been imposed on Vidyasagar Central Cooperative Bank, West Bengal for non-compliance with the directions issued by RBI on “Housing Finance”.
The apex bank has imposed a penalty of Rs 1.50 Lakh on The Karnavati Co-operative Bank Ltd., Ahmedabad, Gujarat 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 ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism’.
And, a penalty of Rs 2.00 Lakh has been imposed on the Gandevi People’s Co-operative Bank Ltd., Navsari, Gujarat for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism’.
The Reserve Bank imposed a monetary penalty of Rs 13 lakh on SBPP Co-operative Bank Limited, Killa Pardi, Gujarat and a monetary penalty of Rs 6.00 lakh on The Sahayadri Sahakari Bank Limited, Mumbai. The RBI imposed a monetary penalty of Rs 1.00 lakh on Rahimatpur Sahakari Bank Ltd., Rahimatpur, Dist. Satara and a monetary penalty of Rs 3.00 lakh on The Gadhinglaj Urban Co-operative Bank Ltd., Gadhinglaj.
The Reserve Bank imposed a monetary penalty of Rs 4.50 lakh on The Kalyan Janata Sahakari Bank Limited, Kalyan, Maharashtra for non-compliance with the directions issued by RBI on ‘Interest Rates on Deposits’ and ‘Maintenance of Deposit Accounts’.
These penalties have 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.
Earlier, on 3rd October 2023, the RBI imposed a monetary penalty on Maninagar Co-operative Bank Ltd., Ahmedabad, Gujarat, Janata Co-operative Bank Ltd., Godhra, Dist. Panchmahal, Gujarat, Dhanera Mercantile Co-operative Bank Ltd., Dhanera, Gujarat and Sarvodaya Sahakari Bank Limited, Modasa, Gujarat. The total fine imposed on these banks were Rs 17 lakh.