Besides Raj Bank, RBI imposed penalties on three more UCBs namely Rajgurunagar Sahakari Bank, Gandhidham Mercantile Co-operative Bank and Meghraj Nagarik Sahakari Bank.
The Reserve Bank of India imposed a penalty of Rs 4.00 lakh on The Rajgurunagar Sahakari Bank Limited, Pune. The UCB was found guilty contravention of the directions issued by RBI on Interest Rate on Deposits.
Kutch based Gandhidham Mercantile Co-operative Bank was penalized Rs 50k for contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’ and ‘Loans and advances to directors etc- directors as surety/guarantors- Clarification’.
The Reserve Bank of India imposed a monetary penalty of Rs 25,000/- on The Meghraj Nagarik Sahakari Bank Ltd., Aravalli (Gujarat. The UCB was found guilty of contravention of directions issued by RBI on ‘Loans and advances to directors etc- directors as surety/guarantors- Clarification’.
RBI clarified that “These actions are 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.”
