RBI Imposed Monetary Penalty on 7 Cooperative Banks; Check Reason and Name of Banks

The Reserve Bank of India (RBI) has imposed Monetary Penalty on 7 Cooperative Banks for non-compliance with the directions issued by RBI.

These Banks are Indian Mercantile Co-operative Bank Ltd., Zoroastrian Co-operative Bank Ltd., Bharat Co-operative Bank (Mumbai) Limited, The Tiruchirappalli District Central Cooperative Bank Ltd., The Cumbum Co-operative Town Bank Ltd., The Chittoor Co-operative Town Bank Limited, The National Co-operative Bank Limited.

Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.20.00 lakh (Rupees twenty lakh only) on Indian Mercantile Co-operative Bank Ltd., Lucknow, Uttar Pradesh (the bank) for non-compliance with the directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters’ (IRAC norms), by an order dated November 24, 2022. This penalty has been imposed in exercise of powers vested in RBI conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of Banking Regulation Act, 1949 (BR Act).

RBI has imposed a monetary penalty of Rs.1.25 crore (Rupees one crore twenty-five lakh only) on Zoroastrian Co-operative Bank Ltd., Bombay (the bank) for non-compliance with RBI directions on ‘Discounting of Bills by UCBs – Restricted Letters of Credit (LC)’ and the provisions of the Co-operative Banks (Period of Preservation of Records) Rules, 1985 (Rules) framed under section 45Y read with section 56 of Banking Regulation Act, 1949 (BR Act).

Imposition of monetary penalty of Rs.50 Lakh (Rupees fifty lakh only) on Bharat Co-operative Bank (Mumbai) Limited, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters’ (IRAC norms) by RBI.

Monetary penalty of Rs.1.00 lakh (Rupees One lakh only) imposed on The Tiruchirappalli District Central Cooperative Bank Ltd., Tiruchirappalli, Tamil Nadu (the bank) for non-adherence/violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other Related Matters.

The Cumbum Co-operative Town Bank Ltd., Cumbum, Prakasam District, Andhra Pradesh (the bank) for non-adherence / violation of directions issued under Frauds – Classification and Reporting and Board of Directors – UCBs is levied by monetary penalty of Rs.3.00 lakh (Rupees Three lakh only).

National Co-operative Bank Limited, Bengaluru, Karnataka (the bank) was fined with Rs.2.00 lakh (Rupees Two lakh only) as monetary penalty for non-adherence / violation of directions issued under Supervisory Action Framework for Urban Co-operative Banks (UCBs).

The Chittoor Co-operative Town Bank Limited, Chittoor, Andhra Pradesh (the bank) was imposed with monetary penalty of Rs.6.00 lakh (Rupees Six lakh only) for non-adherence / violation of directions issued under Establishment of Depositor Education and Awareness Fund, Management of Advances – UCBs, Income Recognition, Asset Classification, Provisioning and Other Related Matters-UCBs and Know Your Customer (KYC)/Anti-Money Laundering (AML)/ Combating of Financing of Terrorism (CFT) Guidelines.