The Reserve Bank of India imposed penalties on five cooperative banks on Thursday. The leading bank Gujarat based Kalupur Commercial Cooperative Bank is also in the list of the fined UCBs.
The other banks are Karad Urban Cooperative Bank, Sehore Jila Sahakari Kendriya Bank, Janata Cooperative Bank, Malegaon and Pragati Mahila Nagrik Sahakari Bank. The total fine worth Rs 46.65 lakh has been imposed on these banks.
The RBI imposed a monetary penalty of Rs 26.60 lakh on the Kalupur Commercial Co-operative Bank Ltd., Ahmedabad (the bank), for contravention of the provisions of section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act) and for non-compliance with RBI directions on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’.
A monetary penalty of Rs 13.30 has been imposed on Karad Urban Co-operative Bank Ltd. Karad (the bank), for non-compliance with certain directions issued by the RBI on ‘Interest Rate on Deposits’.
Besides, the apex bank imposed a monetary penalty of Rs 75,000 on Jila Sahakari Kendriya Bank Maryadit, Sehore, Madhya Pradesh (the bank) for non-compliance with the provisions of section 27 read with section 56 of the Banking Regulation Act, 1949 (BR Act).
Similarly, a monetary penalty of Rs 5 lakh has been imposed on Janata Co-operative Bank Limited, Malegaon, Nashik, Maharashtra (the bank) for non-compliance with the RBI directions on ‘Management of Advances-UCBs’ and ‘Exposure Norms and Statutory/Other Restrictions-UCBs’.
The RBl imposed a monetary penalty of Rs 1 lakh on Pragati Mahila Nagrik Sahakari Bank Maryadit, Bhilai, Chhattisgarh (the bank) for non-compliance with the RBI directions on ‘Exposure Norms and Statutory/Other Restrictions-UCBs’ and ‘Know Your Customer (KYC) Directions, 2016.
The penalties have been imposed in exercise of powers vested in the RBI, conferred under provisions of section 47A (1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
It may be needed to know that in the current financial year till 29th February 2024, RBI has cancelled the banking license of 24 urban cooperative banks.
Also, RBI imposed 176 penalties worth Rs 14.04 crore on cooperative banks during the 2022-23 financial year.