RBI imposes Monetary Penalties on 2 Cooperative and Sahakari Bank for non-compliance with direction

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.29.30 lakh on 2 Cooperatives and 1 Sahakari Bank for non-compliance with directions issued by RBI.

These banks are Progressive Co-operative Bank Limited (Mumbai), Solapur District Central Co-operative Bank Limited (Solapur, Maharashtra) and Shikshak Sahakari Bank Limited (Nagpur).

RBI imposed a monetary penalty of Rs.1.00 lakh on Progressive Co-operative Bank Limited, Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory/ Other Restrictions – UCBs’ and ‘Investments by Primary (Urban) Co-operative Banks’.

A monetary penalty of Rs.5.00 lakh was imposed on Solapur District Central Co-operative Bank Limited, Solapur, Maharashtra (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and the directions issued by RBI on the Depositor Education and Awareness Fund.

Imposition of a monetary penalty of Rs.23.30 lakh on Shikshak Sahakari Bank Limited, Nagpur (the bank) for non-compliance with operational instructions issued by RBI, vide letter dated January 24, 2020, under ‘Supervisory Action Framework for Primary (Urban) Co-operative Banks (UCBs)’.

This penalty has been imposed in the exercise of powers conferred on RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

This action is based on a deficiency 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.