The Reserve Bank of India imposed a monetary penalty on eight cooperative banks on Tuesday, amid violation of RBI rules and regulations. The total fine imposed on these banks amounted to about Rs 33 lakh.
The Banks penalized include Jamnagar District Co-op Bank Limited, Sutex Co-op Bank based in Surat, National Urban Co-op Bank of Pratapgarh, Suvarnayug Sahakari Bank located in Pune, Bantra Co-op Bank in Howrah, Dhule and Nandurbar Jilha Sarkari Nokaranchi Sahakari Bank in Dhule, Maharashtra, Ambarnath Jaihind Co-op Bank in Ambarnath, Maharashtra and Nagrik Sahakari Bank Maryadit, Raipur.
The Reserve Bank of India (RBI) imposed a monetary penalty of 4.10 lakh on the Jamnagar District Co-operative Bank Limited (Gujarat). The Bank was faulted, among others, for non-compliance with section 26 A (2) of the Banking Regulation Act, 1949, KYC Directions, provisions of the Credit Information Companies and RBI directions on ‘Membership of Credit Information Companies by Co-operative Banks’.
A monetary penalty of Rs 10.00 lakh was imposed on the Sutex Co-operative Bank for contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
Similarly, the apex bank imposed a monetary penalty of Rs 10.00 lakh on the National Urban Co-operative Bank Limited, Pratapgarh for contravention of section 35A and section 36 (1) (a) read with section 56 of the Banking Regulation Act, 1949.
Besides, a monetary penalty of Rs 1.00 lakh (Rupees One lakh only) has been imposed on Suvarnayug Sahakari Bank Limited., Pune for flouting of RBI norms on certain issues.
RBI imposed a monetary penalty of Rs 30,000 on Howrah based Bantra Co-operative Bank for contravention of RBI directions to Urban Cooperative Banks on (i) ‘Exposure Norms and
Statutory / Other Restrictions – UCBs’ and (ii) Know Your Customer (KYC) Directions, 2016.
A monetary penalty of Rs 1.00 lakh was imposed on Dhule and Nandurbar Jilha Sarkari Nokaranchi Sahakari Bank for contravention of the directions issued by the RBI to Urban Co-operative Banks on Know Your Customer (KYC).
RBI has imposed a monetary penalty of Rs 2.00 lakh on Ambarnath Jaihind Co-operative Bank based in Ambarnath (Maharashtra) for non-compliance with the directions issued by RBI on ‘Know Your Customers’. The Reserve Bank of India imposed a monetary penalty of Rs 4.50 lakh (on Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh.
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 banks with its customers.