Thursday proved unlucky for co-op sector as three of the co-operative banks were penalized by the RBI for violation of many of its norms. These banks are Raigarh based Jila Sahakari Kendriya Bank Maryadit, Mahila Nagrik Sahakari Bank Maryadit, Mahasamund, Chhattisgarh and Jila Sahakari Kendriya Bank Maryadit, Jabalpur.
Jila Sahakari Kendriya Bank Maryadit, Rajgarh was penalized with a monetary penalty of Rs 50,000 for contravention of directions issued by RBI on Know Your Customer (KYC).
Mahila Nagrik Sahakari Bank Maryadit, Mahasamund, Chhattisgarh was levied a fine of Rs 1.50 lakh. The bank was found guilty of non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions-UCBs.
Jila Sahakari Kendriya Bank Maryadit, Jabalpur was levied with a fine of Rs 1.00 lakh for contravention of provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by the RBI on Know Your Customer (KYC).
This 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, said RBI.