RBI imposed Monetary Penalty on Sahakari Banks; Check Details

The Reserve Bank of India (RBI) has imposed monetary penalty on two Sahakari Bank for non-compliance with the directions issued by RBI.

RBI has imposed a monetary penalty of Rs.26.00 lakh (Rupees Twenty-six lakh only) on Nutan Nagarik Sahakari Bank Ltd., Ahmedabad (the bank) for non-compliance with the directions issued by RBI on ‘Co-operative Bank-Interest rate on deposits’ and ‘Guidelines for issue of ATM-cum-Debit cards by UCBs’ by an order dated January 17, 2023.

Monetary penalty of Rs.1.50 lakh (Rupees One lakh and Fifty Thousand only) imposed on Samarth Sahakari Bank Ltd., Solapur (Maharashtra) (the bank) for contravention of/non-compliance with the directions issued by RBI to Urban Cooperative Banks on Income Recognition and Asset Classification (IRAC).

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.