RBI imposes Monetary Penalties on 5 Cooperative Bank for non-compliance with directions

The Reserve Bank of India (RBI) has imposed monetary penalties on 5 Cooperative Banks for non-compliance with RBI directions.

These Banks are Pune Merchants Co-operative Bank Limited, Pune Municipal Corporation Servant’s Co-operative Urban Bank Limited, Indapur Urban Co-operative Bank Limited, The Patan Urban Co-operative Bank Limited and Janakalyan Sahakari Bank Limited.

RBI has imposed a monetary penalty of Rs.1.00 lakh on Pune Merchants Co-operative Bank Limited, Pune (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.

A monetary penalty of Rs.1.00 lakh was imposed on Pune Municipal Corporation Servant’s Co-operative Urban Bank Limited, Pune (the bank) for non-compliance with RBI directions on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.

Imposition of a monetary penalty of Rs.5.00 lakh on Indapur Urban Co-operative Bank Bank Ltd., Pune, Maharashtra (the bank) for non-compliance with directions issued by RBI on ‘Investments by Primary (Urban) Co-operative Banks’, ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’, and ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.

The Patan Urban Co-operative Bank Limited, Satara, Maharashtra (the bank) has been levied with a monetary penalty of Rs.2.00 lakh for contravention of the provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and for non-compliance with the directions issued by RBI on ‘The Depositor Education and Awareness Fund’.

Monetary penalty on Janakalyan Sahakari Bank Limited, Mumbai (the bank) imposed worth Rs.5.00 lakh for non-compliance with the directions issued by RBI on ‘Reporting of Large Exposures to Central Repository of Information on Large Credits (CRILC)’.

This penalty has been imposed in the exercise of powers conferred on RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

This action is based on a deficiency 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.