RBI imposed Monetary Penalty on 4 Co-operative Banks for non-compliance with RBI’s Direction

The Reserve Bank of India (RBI) has imposed Monetary Penalty of Rs.20 Lakhs on 4 Co-operative Banks for non-compliance with the specific directions issued by RBI.

These banks are The State Transport Co-operative Bank Limited, HCBL Co-operative Bank Ltd., The Citizens’ Co-operative Bank Ltd., Shree Warana Sahakari Bank Ltd.

RBI has imposed a monetary penalty of Rs.2.00 lakh on The State Transport Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘The Depositor Education and Awareness Fund Scheme, 2014’.

Imposition of monetary penalty of Rs.11.00 lakh on HCBL Co-operative Bank Ltd., Lucknow, Uttar Pradesh (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to Directors, their Relatives, and Firms / Concerns in which they are Interested’ and specific directions issued by RBI under the Supervisory Action Framework (SAF).

Monetary Penalty of Rs. 6.00 lakh has been imposed on The Citizens’ Co-operative Bank Ltd., Jammu (the bank) for non-compliance with the specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’ and directions issued under ‘Exposure norms and Statutory/ Other Restrictions – UCBs’.

The Shree Warana Sahakari Bank Ltd., Kolhapur, Maharashtra (the bank) has levied with the monetary penalty of Rs.1.00 lakh for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts- Primary (Urban) co-operative Banks’.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949. This action is based on regulatory compliance deficiencies and is not intended to call into question the validity of any transaction or agreement entered into by the bank with its customers.