Besides placing restrictions on New India Co-op Bank, the Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks for various lapses and omissions.
These are Sulaimani Cooperative Bank, Mahanagarpalika Shikshan Vibhag Sahakari Bank, Salem Urban Cooperative Bank, Ramanathapuram Cooperative Urban Bank and Tiruppur Cooperative Urban Bank.
The RBI levied a penalty of Rs 2.00 lakh on Sulaimani Co-operative Bank Ltd., Vadodara, Gujarat, for non-compliance with certain directions issued by the RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks’ and ‘Interest Rate on Deposits’.
A penalty of Rs 50,000 was imposed on Mumbai Mahanagarpalika Shikshan Vibhag Sahakari Bank Ltd., Mumbai, for non-compliance with RBI’s directions on ‘Know Your Customer (KYC)’.
The RBI imposed a penalty of Rs 1.75 lakh on The Salem Urban Co-operative Bank Ltd., Tamil Nadu, for non-compliance with RBI’s directions on ‘Loans and Advances to Directors, Their Relatives, and Firms/Concerns in Which They Are Interested’, ‘Exposure Norms and Statutory / Other Restrictions – UCBs’, and ‘Know Your Customer (KYC)’.
A penalty of Rs 50,000 was imposed on Ramanathapuram Co-operative Urban Bank Ltd., Ramanathapuram, Tamil Nadu, for non-compliance with RBI’s ‘Know Your Customer (KYC)’ norms.
The RBI also imposed a penalty of Rs 1.50 lakh on Tiruppur Co-operative Urban Bank Ltd., Tamil Nadu, for failing to comply with RBI’s directions on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘Know Your Customer (KYC)’.
These penalties have been imposed under the provisions of Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.