The Reserve Bank of India imposed monetary penalties on five cooperative banks on Monday. These banks included Shahdol Jila Sahakari Kendriya Bank, Krushiseva Urban Cooperative Bank, Bhilai Nagarik Sahakari Bank, Dr Panjabrao Deshmukh Urban Cooperative Bank and Mula Sahakari Bank.
The RBl imposed a monetary penalty of Rs 75,000 on Jila Sahakari Kendriya Bank Maryadit, Shahdol, Madhya Pradesh (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) read with the ‘Depositor Education and Awareness Fund Scheme, 2014’ (the Scheme).
A monetary penalty of Rs 50,000 has been imposed on Krushi Seva Urban Co-operative Bank Limited, Kole, Solapur, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, their relatives and firms/concerns in which they are interested’ read with RBI directions on ‘Board of Directors – UCBs’ and ‘Exposure Norms and Statutory/Other Restrictions – UCBs’ and for contravention of specific directions issued by the RBI under the Supervisory Action Framework (SAF).
Similarly,the RBI imposed a monetary penalty of Rs 50,000 on Bhilai Nagrik Sahakari Bank Maryadit, Bhilai, Chhattisgarh (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Direction, 2016’.
Besides, the Reserve Bank of India (RBl) has imposed a monetary penalty of Rs 5 lakh on Dr. Panjabrao Deshmukh Urban Co-operative Bank Limited, Amravati, Maharashtra (the bank) for contravention of specific directions issued by RBI under Supervisory Action Framework (SAF), and non-compliance with the RBI Directions on ‘Management of Advances-UCBs’ and ‘Know Your Customer (KYC) Directions, 2016’.
A monetary penalty of Rs 50,000 has been imposed on the Mula Sahakari Bank Ltd., Sonai, Dist. Ahmednagar (Maharashtra) (the bank) for non-compliance with the directions issued by the RBI on ‘Exposure Norms and Statutory/Other Restrictions – UCBs’.
The penalties have been imposed in exercise of powers conferred on RBI under the provisions of section 47A(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 banks with their customers.
Similarly, the RBI extended its Directions on five urban co-op banks last week.