A day after releasing the publication on ‘Report on Trend and Progress of Banking in India 2022-23”, RBI slapped fines on five urban cooperative banks and withdrew directions from Mumbai based Raigad Sahakari Bank.
The fines have been imposed on Vidyanand Cooperative Bank, Sree Chaitanya Cooperative Bank, Panchsheel Mercantile Cooperative Bank, Sardargunj Mercantile Cooperative Bank and United Cooperative Bank.
RBl imposed a monetary penalty of Rs 1.00 lakh on Vidyanand Co-operative Bank Limited, Solapur, Maharashtra for non-compliance with the directions issued by RBI on ‘Exposure Norms & Statutory/Other Restrictions – UCBs’ read with RBI directions on ‘Placement of Deposits with Other Banks by Primary UCBs’ and ‘Investments by Primary (Urban) Co-operative Banks’.
A monetary penalty of Rs 5,000 has been imposed on Sree Chaitanya Co-operative Bank Limited, Nabadwip, West Bengal for non-compliance with the directions issued by RBI on ‘Membership of Credit Information Companies (CICs)’.
Besides, RBI imposed a monetary penalty of Rs 50,000 on the Panchsheel Mercantile Co-operative Bank Limited, Surat for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
Similarly, a monetary penalty of Rs 2.00 lakh has been imposed on Sardar Gunj Mercantile Co-operative Bank Limited, Patan for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
And, RBI imposed a monetary penalty of Rs 1.00 lakh on the United Co-operative Bank Limited, Ahmedabad for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, says RBI.
But there was also good news from RBI as it withdrew directions from Raigad Sahakari Bank saying, “The Reserve Bank of India hereby withdraws with effect from December 28, 2023, the said Directions issued to Raigad Sahakari Bank Limited, Mumbai”.