RBI imposed Monetary Penalty on Cooperative Bank and Sahakari Bank; Check Reason:

RBI imposed Monetary Penalty on Cooperative Bank and Sahakari Bank; Check Reason The Reserve Bank of India(RBI) has imposed monetary penalty on Cooperative Bank and Sahakari Bank for contravention of non-compliance with the directions issued by RBI. Monetary penalty of Rs.1.00 lakh (Rupees One Lakh only) imposed on The Jamnagar people’s Co-operative Bank Ltd., Jamnagar (Gujarat) (the bank) for contravention of directions issued by RBI on ‘Income Recognition, Asset Classification and Provisioning Norms for Loans and Advances’ and ‘Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016’. This penalty has been imposed in exercise of powers vested in the 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. This action is based on regulatory compliance flaws and is not meant to call into question the legitimacy of any transaction or arrangement entered into by the bank with its clients. Imposition of Monetary penalty on Rs.4.00 lakh (Rupees Four Lakh only) on Shree Chhani Nagarik Sahakari Bank Limited, Vadodara (Gujarat) (the bank) for contravention of directions issued by RBI on ‘Board of Directors of Urban Co-operative Banks - Professionalisation and their Role - Do's and Don'ts’, ‘Prudential Norms Income Recognition, Asset Classification, Provisioning and Other Related Matters’, ‘Loans and advances to directors etc.- directors as surety/guarantors- Clarification’, ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism’ and ‘Master Direction - Know Your Customer (KYC) Direction, 2016’. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. 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.