RBI imposed Monetary Penalty on 6 Cooperative and 3 Sahakari Banks; Check Name of Banks

The Reserve Bank of India (RBI) has imposed monetary penalty on 6 Cooperative and 3 Sahakari Banks for contravention of/ non-compliance with the directions issued by Reserve Bank of India (RBI).

These banks are The Berhampur Cooperative Urban Bank Ltd., Odisha, The Kendrapara Urban Co-operative Bank Ltd., Kendrapara, Odisha, The Jamshedpur Urban Cooperative Bank Ltd., Jamshedpur, Jharkhand, Krishna Mercantile Co-operative Bank Ltd., Bhopal (M.P.), Renuka Nagarik Sahakari Bank Maryadit, Ambikapur (Chhattisgarh), Jila Sahakari Kendriya Bank Maryadit, Balaghat (M.P), Osmanabad Janata Sahakari Bank Ltd., Osmanabad (Maharashtra), The Santrampur Urban Co-operative Bank Ltd., Santrampur, district Mahisagar (Gujarat), The Nawanagar Co-operative Bank Ltd., Jamnagar (Gujarat).

RBI has imposed a monetary penalty of Rs.3.10 lakh (Rupees Three lakh and Ten thousand only) on The Berhampur Cooperative Urban Bank Ltd. (the bank) for contravention of/ non-compliance with the directions issued by Reserve Bank of India (RBI) on (i) Exposure Norms and Statutory/Other Restrictions-UCBs (ii) certain provisions of the Reserve Bank of India – (Know Your Customer (KYC) Direction, 2016 and (iii) Depositor Education and Awareness Fund, by an order dated November 10, 2022.

Monetary penalty of Rs.50,000/- (Rupees Fifty thousand only) imposed on The Kendrapara Urban Co-operative Bank Ltd., Kendrapara, Odisha (the bank) for contravention of/ non-compliance with the directions issued by RBI on the Depositor Education and Awareness Fund.

Rs.1.00 lakh (Rupees One lakh only) monetary penalty imposed on The Jamshedpur Urban Cooperative Bank Ltd., Jamshedpur, Jharkhand (the bank) for contravention of Section 36 (1) read with Section 56 of the Banking Regulation Act, 1949 as the bank failed to adhere to specific directions under the Supervisory Action Framework (SAF).

Krishna Mercantile Co-operative Bank Ltd., Bhopal (M.P.) (the bank) was imposed with monetary penalty of Rs.50,000/- (Rupees Fifty thousand only) for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions, by an order dated November 09, 2022.

Imposition of Monetary Penalty on Renuka Nagarik Sahakari Bank Maryadit, Ambikapur (Chhattisgarh) (the bank) of Rs.1.00 lakh (Rupees One lakh only) for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/ Other Restrictions and Know Your Customer (KYC).

Jila Sahakari Kendriya Bank Maryadit, Balaghat (M.P) (the bank) was fined with Rs.1.00 lakh (Rupees One lakh only) as monetary penalty for contravention of/ non-compliance with the provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by NABARD on ‘Frauds – Guidelines for Classification, Reporting and Monitoring’.

Osmanabad Janata Sahakari Bank Ltd., Osmanabad, Maharashtra (the bank) for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Know Your Customer (KYC) is levied by monetary penalty of Rs.2.50 lakh (Rupees Two lakh fifty thousand only).

Reserve Bank of India has imposed, by an order dated November 09, 2022, a monetary penalty of Rs.25,000/- (Rupees Twenty-Five Thousand only) on The Nawanagar Co-operative Bank Ltd., Jamnagar (Gujarat) (the bank) for contravention of directions issued by RBI on ‘Loans and advances to directors etc.- directors as surety/guarantors-Clarification’.

RBI also imposed monetary penalty of Rs.2.00 lakh (Rupees Two lakh only) on The Santrampur Urban Co-operative Bank Ltd., Santrampur, district Mahisagar (Gujarat) (the bank) for contravention of directions issued by RBI on ‘Maintenance of Statutory Reserves – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) by Primary (Urban) Co-operative Banks’.

This action is based on deficiencies 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.