The Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks for failing to comply with various regulatory directions.
The Tamil Nadu Circle Postal Co-operative Bank Ltd., Tamil Nadu, and The Guntur District Co-operative Central Bank Ltd., Andhra Pradesh, were each fined Rs 50,000. The former for non-compliance with directions under the Supervisory Action Framework (SAF), and the latter for violations of the Know Your Customer (KYC) norms.
The South Canara District Central Co-operative Bank Ltd., Karnataka, was penalized Rs 1.50 lakh for non-compliance with housing finance regulations, including enhancement of individual housing loan limits and credit to Commercial Real Estate – Residential Housing (CRE-RH), along with contraventions of Sections 19 and 56 of the Banking Regulation Act, 1949.
Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana, was fined Rs 10 lakh for non-compliance with directives related to the marketing and distribution of mutual fund and insurance products by urban cooperative banks.
Makarpura Industrial Estate Co-operative Bank Ltd., Vadodara, Gujarat, was fined Rs 2 lakh for failing to comply with KYC guidelines and the basic and comprehensive cyber security frameworks prescribed for primary (urban) cooperative banks.
