RBI imposed Monetary Penalty of Rs.1.21 crore on 2 Cooperative Banks and 1 Sahakari Bank; Check Reason:

RBI imposed Monetary Penalty of Rs.1.21 crore on 2 Cooperative Banks and 1 Sahakari Bank; Check Reason The Reserve Bank of India (RBI) has imposed Monetary Penalty of Rs.1.21 crore on 2 Cooperative Banks and 1 Sahakari Bank for non-compliance with directions issued by RBI. RBI has imposed a monetary penalty of Rs.6.00 lakh on The Urban Co-operative Bank Limited, Rourkela (the bank) for contravention of/ non-adherence with the directions issued by RBI on Know Your Customer (KYC) and Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks, by an order dated June 09, 2023. Monetary penalty of Rs.65.00 lakh has been imposed on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad (the bank) for non-compliance with directions issued by RBI on ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs), ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) - A Graded Approach’ and ‘Internet Banking Facility for Customers of Cooperative Banks’. Imposition of monetary penalty of Rs.50.00 lakh on Dombivli Nagari Sahakari Bank Limited, Dombivli (the bank) for non-compliance with directions issued by RBI on ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) and ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) - A Graded Approach’. This penalty was imposed in execution of RBI's powers under Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into consideration the bank's failure to follow the aforementioned RBI orders. This action is based on regulatory compliance problems and is not intended to call into question the legitimacy of any transaction or agreement entered into by the bank with its clients.