The Reserve Bank of India imposed monetary penalties on four cooperative banks including Ropar Central Cooperative Bank, Pondicherry Cooperative Urban Bank, Udumalpet Cooperative Urban Bank and Mandya City Cooperative Bank worth Rs 7.25 lakh.
A monetary penalty of Rs 5 lakh has been imposed on the Ropar Central Co-operative Bank Ltd., Ropar, Punjab (the bank) for contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
The RBI imposed a monetary penalty of Rs 1 lakh (Rupees One Lakh only) on The Pondicherry Co-operative Urban Bank Ltd., Puducherry (the bank) for non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’ and certain directions issued by RBI on ‘Know Your Customer (KYC)’.
Besides, a monetary penalty of Rs 75,000 on the Udumalpet Co-operative Urban Bank Ltd., Tamil Nadu (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’ and ‘Exposure Norms and Statutory / Other Restrictions – UCBs’.
A monetary penalty of Rs 50,000 has been imposed on Mandya City Co-operative Bank Ltd., Mandya, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’.
These penalties have been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
