RBI imposed Monetary Penalty of Rs.72 Lakhs on 3 Cooperative Banks; Check Reason:

RBI imposed Monetary Penalty of Rs.72 Lakhs on 3 Cooperative Banks; Check Reason The Reserve Bank of India (RBI) has imposed Monetary Penalty of Rs.72 Lakhs on 3 Cooperative Banks for non-compliances/contravention of directions issued by RBI. RBI has imposed a monetary penalty of Rs.10.00 lakh on The Co-operative Bank of Rajkot Ltd., Rajkot (Gujarat) (the bank) for contravention of directions issued by RBI on ‘Reporting of unauthorised transactions by customers to banks’, ‘Names as Appearing in the Certificate of Registration and the Licence - Use of - Primary (Urban) Co-operative Banks (UCBs)’ and ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism’, by an Order dated June 05, 2023. This penalty was imposed in execution of the RBI's powers under Section 47 A (1) (c) read with Sections 46 (4) (i) and 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. Imposition of Monetary Penalty of Rs.2.00 lakh on Telangana State Cooperative Apex Bank Limited, Hyderabad (the bank), for contravention of the provisions of section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under section 47A (1) (c) read with sections 46 (4) (i) and 56 of the BR Act. This action is based on regulatory compliance problems and is not meant to call into question the legitimacy of any transaction or agreement entered into by the bank with its clients. Monetary Penalty of Rs.60.20 lakh has been imposed on The Bihar State Co-operative Bank Limited, Patna for ─ (i) contravention of the provisions of sections 24(3), 26 and 27(1) read with section 56 of the Banking Regulation Act, 1949 (BR Act) and the Banking Regulation (Co-operative Societies) Rules, 1966 (BR Rules); (ii) non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 as well as directions of RBI on “Customer Service in State / District Central Co-operative Banks (StCBs / DCCBs)”, both issued under BR Act; (iii) non-compliance with the directions on “Membership of Credit Information Companies (CICs)” issued by the RBI under the Credit Information Companies (Regulation) Act, 2005 [CIC (R) Act]; and (iv) non-compliance with the directions on “Off-site Surveillance System - Revision of Returns” issued by NABARD under section 27(3) of the BR Act. This penalty was issued in the exercise of RBI's powers under section 47A (1) (c) read with sections 46 (4) (i) and 56 of the BR Act, as well as provision 25(1)(iii) read with section 23(4) of the CIC (R) Act. 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.