RBI imposes Monetary Penalty on 3 Sahakari Bank for non-compliance with RBI Direction:

RBI imposes Monetary Penalty on 3 Sahakari Bank for non-compliance with RBI Direction The Reserve Bank of India (RBI) has imposed a Monetary Penalty of Rs.5.50 Lakhs on 3 Sahakari Bank for non-compliance with RBI Direction. RBI imposed a monetary penalty of Rs. 1.00 lakh on Sarvodaya Nagarik Sahakari Bank Ltd., Himmatnagar, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’. A monetary penalty of Rs. 2.00 lakh on Porbandar Vibhagiya Nagarik Sahkari Bank Ltd., Porbandar, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’. Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad, Gujarat (the bank) has levied with monetary penalty of Rs.2.50 lakh for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. 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.