RBI Imposed Monetary Penalty on 8 Cooperative Banks; Check Reason and Name of the Banks

RBI Imposed Monetary Penalty on 8 Cooperative Banks; Check Reason and Name of the Banks The Reserve Bank of India(RBI) has imposed Monetary Penalty on 8 Cooperative Banks for contravention of/ non-compliance with the directions issued by RBI. These Banks are National Urban Co-operative Bank Limited, The Kendrapara Urban Cooperative Bank, Kakinada Co-operative Town Bank Ltd, The Nellore Co-operative Urban Bank Limited, The Visakhapatnam Co-operative Bank Ltd, The Darussalam Co-operative Urban Bank Ltd., The Ottapalam Co-operative Urban Bank Ltd, Bharat Heavy Electricals Employees’ Co-operative Bank Limited. Reserve Bank of India (RBl) has imposed a monetary penalty of Rs.5.00 lakh (Rupees Five Lakh only) on the National Urban Co-operative Bank Limited, Pratapgarh, Uttar Pradesh (the bank) for non-compliance with certain directions issued by RBI. 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, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. Monetary penalty of Rs.1.00 lakh (Rupees One lakh only) imposed on The Kendrapara Urban Cooperative Bank, Kendrapara (the bank) for contravention of/ non-compliance with the directions issued by RBI. Rs.10.00 lakh (Rupees Ten lakh only) monetary penalty imposed on Kakinada Co-operative Town Bank Ltd, Kakinada, East Godavari District, Andhra Pradesh (the bank) for non-adherence / violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and Establishment of Depositor Education and Awareness Fund. The Nellore Co-operative Urban Bank Limited, Gandhi Nagar, Nellore District, Andhra Pradesh (the bank) was imposed monetary penalty of Rs.10.00 lakh (Rupees Ten lakh only) for non-adherence / violation of directions issued under i) prohibition of loans and advances to Directors and their Relatives and Firms / Concerns in which they are interested– UCBs and ii) Exposure Norms and Statutory / Other Restrictions-UCBs. Imposition of Monetary Penalty on The Visakhapatnam Co-operative Bank Ltd, Visakhapatnam, Andhra Pradesh (the bank) of Rs.55.00 lakh (Rupees Fifty five lakh only) for non-adherence/violation of directions issued under (i) Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and (ii) Finance for Housing Schemes-UCBs. The Darussalam Co-operative Urban Bank Ltd., Hyderabad, Telangana (the bank) was fined with Rs.10.00 lakh (Rupees Ten lakh only) as monetary penalty for for non-adherence / violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and Board of Directors-UCBs. Ottapalam Co-operative Urban Bank Ltd., No.F. 1647, Ottapalam, Palakkad District, Kerala (the bank) for non-adherence / violation of directions issued under i) Income Recognition, Asset Classification, Provisioning and Other related Matters-UCBs and ii) Know Your Customer (KYC) Guidelines – Primary (Urban) Co-operative Banks is levied by monetary penalty of Rs.5.00 lakh (Rupees five lakh only). RBI also has imposed monetary penalty of Rs.10.00 lakh (Rupees Ten lakh only) on Bharat Heavy Electricals Employees’ Co-operative Bank Limited, Kailasapuram, Tiruchirappalli, Tamil Nadu (the bank) for non-adherence/violation of directions issued under Exposure Norms and Statutory/ Other Restrictions – UCBs. 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.