The Reserve Bank of India imposed a monetary penalty on four urban cooperative banks and extended the period of direction on two cooperative banks on Monday.
The urban cooperative banks on which RBI imposed penalty included, Pudukkottai Co-operative Town Bank, Sangli Sahakari Bank Limited, Nasik Merchant’s Co-operative Bank and Mehsana Urban Co-operative Bank. Besides, extended the period of direction on Shankarrao Mohite Patil Sahakari Bank and Shimsha Sahakara Bank Niyamitha, Maddur.
The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 25,000 (Rupees Twenty-five thousand only) on the Pudukkottai Co-operative Town Bank Ltd., Pudukkottai, Tamil Nadu (the bank) for non-compliance with the directions issued by RBI on ‘Board of Directors – UCBs’.
A monetary penalty of Rs 2.00 lakh (Rupees Two lakh only) on Sangli Sahakari Bank Limited, Mumbai for non-compliance with the directions issued by RBI on ‘Board of Directors-UCBs’.
Besides, RBI imposed a monetary penalty of Rs 48.30 lakh (Rupees Forty-eight lakh thirty thousand only) on the Nasik Merchant’s Co-operative Bank Ltd for non-compliance with the directions issued by RBI on ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism’ and on ‘Maintenance of Deposit Accounts’.
Similarly, a monetary penalty of Rs 15 lakh (Rupees Fifteen lakh only) on the Mehsana Urban Co-operative Bank Ltd., Mehsana for non-compliance with the directions issued by RBI on ‘Interest Rate on Deposits’.
This penalty has been imposed in exercise of powers conferred on the RBI by Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
This action is based on deficiency 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.
The Reserve Bank of India extended the period of directions on Shankarrao Mohite Patil Sahakari Bank Ltd., for a further period of three months from the close of business on November 24, 2023 to the close of business on February 24, 2024, subject to review.
And, on Shimsha Sahakara Bank Niyamitha, Maddur, it has been extended for a further period of three months from the close of business on November 24, 2023 to the close of business on February 24, 2024, subject to review.