The Reserve Bank of India has imposed a monetary penalty on two UCBs namely New India Co-operative Bank, Mumbai and Jalgaon People’s Co-operative Bank for flouting its norms.
A fine of 25 lakhs was imposed on New India Co-operative Bank for non-compliance with directions issued by RBI contained in the circular on ‘Frauds in UCBs: Changes in monitoring and reporting mechanism’.
Jalgaon People’s Co-operative Bank was fined Rs 20 lac for non-compliance with direction issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charge was substantiated and warranted imposition of monetary penalty.
