Reserve Bank of India imposed a monetary penalty on the five cooperative banks and extended the period of direction on Akluj (Maharashtra) based Shankarro Mohite Patil Sahakari Bank for a further period of three months on Thursday.
The apex bank imposed penalty on Adinath Cooperative Bank, GP Parsik Sahakari Bank, Transport Cooperative Bank, Hanamasagar Urban Cooperative Bank and Janseva Cooperative Bank. The heavy fine of Rs 26.60 lakh imposed on Maharashtra based GP Parsik Sahakari Bank
RBI imposed a monetary penalty of Rs 26.60 lakh on G P Parsik Sahakari Bank Ltd., Thane (the bank) for non-compliance with the directions issued by RBI on ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’ and on ‘Basic Savings Bank Deposit Account’ (BSBD Account).
A monetary penalty of Rs 1.50 lakh has been imposed on the Adinath Co-operative Bank Limited, Dist. Surat, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
Besides, the apex bank imposed a monetary penalty of Rs 50,000 on Janseva Co-operative Bank Limited, Nashik, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are Interested’ read with ‘Loans and Advances to Directors etc. – Directors as surety/guarantors – Clarification’.
A monetary penalty of Rs 1.00 lakh has been imposed on Transport Co-operative Bank Ltd., Indore, Madhya Pradesh (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are Interested’ read with ‘Loans and Advances to Directors etc. – Directors as surety/guarantors – Clarification’ and on ‘Investments by Primary (Urban) Co-operative Banks’.
Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Hanamasagar Urban Co-operative Bank Ltd., Hanamasagar, Karnataka (the bank) for non-compliance with the directions issued by RBI on “Frauds in UCBs: Changes in Monitoring and Reporting mechanism” read with the directions issued by RBI on “Master Circular on Frauds-Classification and Reporting” and “Reporting of Frauds on XBRL-FMR submission, FMR 2 discontinuation and introduction of FMR-3”.
This penalty has 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 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.
The Reserve Bank of India extended the period of directions on Shankarrao Mohite Patil Sahakari Bank Ltd., Akluj, Maharashtra for a further period of three months from close of business on February 24, 2024 to close of business on May 24, 2024, subject to review.