RBI imposed Monetary Penalty on 3 Co-operative Banks; Know Reason:

RBI imposed Monetary Penalty on 3 Co-operative Banks; Know Reason The Reserve Bank of India (RBI) has imposed monetary penalty of Rs.61 Lakhs on 3 Co-operative Banks for contravention of the provisions and non-compliance with the directions issued by RBI. These Banks are Saraswat Co-operative Bank Limited, Rajkot Nagarik Sahakari Bank Ltd, Bassein Catholic Co-operative Bank Ltd. RBI has imposed a monetary penalty of Rs.23 lakh on Saraswat Co-operative Bank Limited, Mumbai (the bank) for contravention of the provisions of Section 20(1)(b)(iii) read with Section 56 of the Banking Regulation Act, 1949 (BR Act), and the directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’. Monetary penalty of Rs.13 lakh on Rajkot Nagarik Sahakari Bank Ltd., Rajkot (the bank) for non-compliance with the directions issued by RBI on ‘Interest Rate on Deposits’. Imposition of monetary penalty of Rs.25 lakh on Bassein Catholic Co-operative Bank Ltd., Vasai, Maharashtra (the bank) for contravention of the provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act), and the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions’. This penalty has been imposed in exercise of powers vested in RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. This action is based on 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.