The Reserve Bank of India has imposed monetary penalties on two urban cooperative banks in Gujarat. Sutex Cooperative Bank and Bapunagar Mahila Cooperative Bank were both fined on Thursday for failing to adhere to regulatory directives.
Sutex Cooperative Bank Ltd., located in Surat, was fined Rs 5 lakh. The penalty was issued for non-compliance with the RBI’s ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) – A Graded Approach’ and the ‘Levy of Penal Charges on Non-Maintenance of Minimum Balances in Inoperative Accounts’ directives.
In a separate action, the RBI imposed a Rs 2 lakh fine on Bapunagar Mahila Cooperative Bank Ltd. in Ahmedabad. This penalty was for not complying with the RBI’s guidelines on the ‘Placement of Deposits with Other Banks by Primary (Urban) Cooperative Banks (UCBs)’.
The penalties were levied under the powers granted to the RBI by section 47A(1)(c), read in conjunction with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
