Two cooperative sector lenders — Surat Mercantile Co-operative Bank and Urban Co-operative Bank, Cuttack were fined by the Reserve Bank with a penalty of Rs.5 lakh due to the reason being violation of certain banking norms.
“The RBI has imposed a monetary penalty of Rs.5 lakh on the Surat Mercantile Co-operative Bank for violation of RBI instructions on disposal of non-banking assets, donations and purchasing of cheques,” the apex bank said in a statement.
Urban Co-operative Bank, Cuttack has faced the penalty only upto Rs.1 lakh for violation of instructions relating to opening of collection counters without prior approval RBI.
“After considering the facts of the case and the bank’s reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty,” it said.