On Monday, the Reserve Bank of India imposed a monetary penalty worth Rs 4.20 lakh on four urban cooperative banks. The banks on which RBI imposed penalty included, Vinayak Sahakari Bank Ltd, Ahmedabad, Vita Urban Co-operative Bank Ltd., Mizoram Urban Cooperative Development Bank Ltd., and Shreeji Bhatia Cooperative Bank Ltd.
The Reserve Bank of India imposed a monetary penalty of Rs 1.50 lakh (Rupees one lakh fifty thousand only) on Shri Vinayak Sahakari Bank Ltd, Ahmedabad (Gujarat) (the bank) for contravention of direction issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
Besides, a monetary penalty of Rs 1.50 lakh (Rupees One lakh and Fifty Thousand only) on Vita Urban Co-operative Bank Ltd., Vita, Maharashtra has been imposed for contravention of provisions of Section 26-A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and directions issued by RBI on ‘Maintenance of Deposit Accounts’.
Similarly, a monetary penalty of Rs 20,000/- (Rupees Twenty thousand only) has been imposed on Mizoram Urban Cooperative Development Bank Limited, Aizawl (the bank) for non-compliance with specific directions issued by RBI under Supervisory Action Framework (SAF) and certain provision of ‘Reserve Bank of India (Know Your Customer (KYC) Directions, 2016.
The Reserve Bank of India (RBI) has, by an order dated July 03, 2023, imposed a monetary penalty of Rs 1.00 lakh (Rupees One Lakh only) on Shreeji Bhatia Cooperative Bank Ltd., Mumbai.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 (BR Act).
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.