RBI imposed Monetary Penalty on Co-operative and Sahakari Banks; Check Reason:

RBI imposed Monetary Penalty on Co-operative and Sahakari Banks; Check Reason The Reserve Bank of India (RBI) has imposed a monetary penalty on 2 Co-operative and 2 Sahakari Banks Limited for contravention of directions issued by RBI. RBI has imposed a monetary penalty of Rs.1.00 lakh on Kokan Mercantile Co-operative Bank Limited., Mumbai (the bank) for contravention of directions issued by RBI on Maintenance of Deposit Accounts, by an order dated May 29, 2023. This penalty was imposed in execution of RBI's powers under Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (the Act), taking into consideration the bank's failure to follow the aforementioned RBI orders. 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. Imposition of Monetary penalty of Rs.3.00 lakh on Sawantwadi Urban Co-operative Bank Ltd., Sawantwadi (the bank) for contravention of directions contained in the Supervisory Action Framework (SAF) issued by RBI under section 36 (1) read with section 56 of the Banking Regulation Act, 1949 (the Act) 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 (the Act), taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. The Bajirao Appa Sahakari Bank Ltd., Ankalkhop (the bank) for non-compliance with the directions issued by RBI on ‘Investments by Primary (Urban) Co-operative Banks’ and ‘Know Your Customers’ (KYC) is levied by monetary penalty of Rs.2 Lakh. Monetary Penalty of Rs.1.00 lakh has been imposed on Shri Laxmi Sahakari Bank Ltd., Mhaisal (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customers’ (KYC). 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 Section 56 of Banking Regulation Act, 1949 (BR Act).