On Monday RBI announced penalties on three urban cooperative banks. They are Gwalior based Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Nagrik Sahakari Bank Maryadit, Vidisha and Ravi Commercial Urban Co-operative Bank Ltd., Nagpur.
The Reserve Bank of India imposed a monetary penalty of Rs 1.50 lakh on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, as the UCB was found guilty of contravention of the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions and Know Your Customer (KYC).
Vidisha based Nagrik Sahakari Bank Maryadit was penalized by RBI for not following KYC norms. RBI imposed a monetary penalty of Rs 25,000 on the UCB.
RBI imposed a penalty of Rs 1.00 lakh on Ravi Commercial Urban Co-operative Bank Ltd., Nagpur as the UCB did not follow RBI directions on Exposure Norms & Statutory/ Other Restrictions.
These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarified the RBI.