RBI imposes Monetary Penalty on 5 Cooperative Banks for non-compliance with RBI Directions

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.13.10 lakhs on 5 Cooperative Banks for non-compliance with RBI Directions.

RBI imposed a monetary penalty of Rs.1.00 lakh on Shihori Nagarik Sahakari Bank Ltd., Shihori, Dist. Banaskantha, Gujarat (the bank) for non-compliance with 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 ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.

Imposition of a monetary penalty of Rs.2.00 lakh on Pij People’s Co-operative Bank Limited, Pij, Dist. Kheda, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’.

A monetary penalty of Rs.7.00 lakh imposed on Uma Co-operative Bank Ltd., Vadodara, Gujarat (the bank) for contravention of directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.

The Birbhum District Central Co-operative Bank Ltd., Birbhum, West Bengal (the bank) levied with a monetary penalty of Rs.1.10 lakh for non-compliance with the directions issued by RBI on ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’ and ‘Membership of Credit Information Companies (CICs)’.

For non-compliance with the directions issued by RBI on ‘Housing Finance’ applicable to State Co-operative Banks, a monetary penalty of of Rs.2.00 lakh imposed on Mizoram Co-operative Apex Bank Ltd., Aizawl.

This penalty has been imposed in exercise of powers conferred on 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 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.