RBI imposed Monetary Penalty on 4 Cooperative Banks; Check Reason:

RBI imposed Monetary Penalty on 4 Cooperative Banks; Check Reason The Reserve Bank of India(RBI) has imposed Rs.6 Lakhs Monetary Penalty on 4 Cooperative Banks for non-compliance with certain provisions of the RBI KYC Direction 2016. RBI has imposed a monetary penalty of Rs.2.00 lakh on Ratnagiri Urban Co-operative Bank Ltd., Ratnagiri, Maharashtra (the bank) for non-compliance with certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’ by an order dated August 17, 2023. This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949. Monetary penalty of Rs.1.00 lakh imposed on The Municipal Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks’. The Kolhapur Urban Co-operative Bank Ltd., Kolhapur, Maharashtra (the bank) has been imposed by the monetary penalty of Rs.1.00 lakh for non-compliance with directions issued by RBI on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks’. Imposition of monetary penalty of Rs.2.00 lakh on The Midnapore People’s Co-operative Bank Ltd., West Bengal (the bank) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘Know Your Customer (KYC) Direction, 2016’. This penalty was imposed by the RBI in accordance with the requirements of Section 47 A (1) (c), Section 46 (4) (i), and Section 56 of the Banking Regulation Act of 1949. 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.