In a couple of days RBI has imposed monetary penalty on two UCBs namely Surat based Kosamba Mercantile Co-operative Bank and Satara based Prathamik Shikshak Sahakari Bank.
RBI imposed a monetary penalty of ?1.00 lakh on the Kosamba Mercantile Co-operative Bank Ltd., Kosamba, Dist. Surat (Gujarat) for for non-compliance with directions issued by RBI contained in the Circular on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’ dated April 29, 2003.
A fine of Rs 2.00 lakh was imposed on Prathamik Shikshak Sahakari Bank Ltd., Satara for contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs.
The 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, clarifies RBI.
