On Monday, through several notifications’ RBI announced that it has imposed fine on five urban cooperative banks and extended Directions on another six. The UCBs on which fines were imposed include Shihori Nagarik Sahakari Bank, Pij People’s Co-operative Bank, Uma Co-operative Bank, Birbhum District Central Co-operative Bank and Mizoram Cooperative Apex Bank.
Those banks where the RBI’s restrictions will continue to hold true are Durga Co-operative Urban Bank, The Anjangaon Surji Nagari Sahakari Bank, Jaiprakash Narayan Nagari Sahakari Bank, Indian Mercantile Co-operative Bank, Jaiprakash Narayan Nagari Sahakari and The Karmala Urban Co-operative Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 7.00 lakh on Uma Co-operative Bank Ltd., Vadodara, Gujarat for contravention of directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
RBI imposed a monetary penalty of Rs 2.00 lakh on Pij People’s Co-operative Bank Limited, Pij, Dist. Kheda, Gujarat for non-compliance with the directions issued by RBI on ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’.
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Shihori Nagarik Sahakari Bank Ltd., Shihori, Dist. Banaskantha, Gujarat for non-compliance with directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ read with ‘Loans and advances to Directors etc. – Directors as surety/guarantors – Clarification’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
RBI imposed a monetary penalty of Rs 1.10 lakh on Birbhum District Central Co-operative Bank Ltd., Birbhum, West Bengal for non-compliance with the directions issued by RBI on ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’ and ‘Membership of Credit Information Companies (CICs)’.
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on Mizoram Co-operative Apex Bank Ltd., Aizawl for non-compliance with the directions issued by RBI on ‘Housing Finance’ applicable to State Co-operative Banks.
RBI extended Directions on Jaiprakash Narayan Nagari Sahakari Bank Ltd, Basmatnagar for a period of six months up to January 29, 2024, subject to review. Directions on The Karmala Urban Co-operative Bank Limited, Solapur, Maharashtra was extended for a further period of three months from the close of business on October 29, 2023 to the close of business on January 29, 2024.
The Reserve Bank of India extended the Directions on Urban Co-operative Bank Ltd., Sitapur (U.P) till January 28, 2024. Direction on The Anjangaon Surji Nagari Sahakari Bank Ltd., Amravati, Maharashtra was also extended till January 28, 2024, subject to review.
RBI extended Directions to Durga Co-operative Urban Bank Ltd., Vijayawada to January 29, 2024, subject to review. Direction on Indian Mercantile Co-operative Bank Ltd., Lucknow was extended till January 27, 2024, subject to review.