RBI has imposed a monetary penalty on two urban cooperative banks on Wednesday for violation of its directive. The UCBs penalized are Swasakthi Mercantile Cooperative Urban Bank, Vijayawada and Shikshak Sahakari Bank, Nagpur.
RBI imposed a penalty of Rs 5.00 lakh on The Swasakthi Mercantile Cooperative Urban Bank for contravention of certain provisions of the directions issued by RBI contained in the Master Circular on Board of Directors – UCBs dated July 1, 2015.
Swasakthi Mercantile Cooperative Urban Bank was penalized by the RBI for non-compliance with regulatory directions issued by RBI contained in its directive on “Membership of Credit Information Companies (CICs)” and the provisions of Credit Information Companies Rules, 2006 (CIC Rules). The UCB has to pay Rs 40k.
RBI 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 the regulator.