This week the Reserve Bank of India imposed a monetary penalty on six cooperative banks worth Rs 12.20 lakh for various acts of omission and commission.
The banks include Aligarh Zila Sahkari Bank Ltd., Aligarh, Uttar Pradesh, Delhi Nagrik Sehkari Bank Limited, New Delhi, Ganesh Sahakari Bank Ltd., Navi Sangvi, Pune, Vyapari Sahakari Bank Maryadit, Solapur (Maharashtra), Mehsana District Central Co-operative Bank Ltd., Mehsana (Gujarat) and Kolkata Police Co-operative Bank Ltd., Kolkata, West Bengal.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.00 lakh (Rupees Two Lakh only) on Aligarh Zila Sahkari Bank Ltd., Aligarh, Uttar Pradesh (the bank) for contravention of provisions of section 20 read with Section 56 of the Banking Regulation Act, 1949.
The RBI has, imposed a monetary penalty of Rs 3.00 lakh (Rupees Three Lakh only) on the Delhi Nagrik Sehkari Bank Limited, New Delhi (the bank) for contravention of section 35A and section 36 (1) (a) read with section 56 of the Banking Regulation Act, 1949.
Similarly, the monetary penalty of Rs 2.00 lakh (Rupees Two lakh only) has been imposed on Shri Ganesh Sahakari Bank Ltd., Navi Sangvi, Pune (the bank) for contravention of directions issued by RBI on Know Your Customer (KYC) and Maintenance of Deposit Accounts.
Besides, the Reserve Bank of India (RBl) has imposed a monetary penalty of Rs 2.00 lakh (Rupees Two lakh only) on Vyapari Sahakari Bank Maryadit, Solapur (Maharashtra) (the bank) for contravention of/ non-adherence with the directions issued by RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions – UCBs and Board of Directors-UCBs.
The RBI also imposed a penalty on Mehsana District Central Co-operative Bank and Kolkata Police Co-operative Bank worth Rs 2.10 lakh and Rs 1.10 lakh respectively.
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.