RBI imposes Monetary Penalty on 4 Banks; Know Reason:

RBI imposes Monetary Penalty on 4 Banks; Know Reason The Reserve Bank of India(RBI) has imposed Monetary Penalty of Rs.14 lakh on 2 Cooperative Banks and 2 Sahakari Banks for non-compliance with the directions issued by RBI. RBI has imposed a monetary penalty of Rs.5.00 Lakh on The Viramgam Mercantile Co-operative Bank Ltd., Viramgam, Dist. Ahmedabad, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors etc. – directors as surety/guarantors – Clarification’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and specific directions issued by RBI under the Supervisory Action Framework (SAF), by an Order dated August 22, 2023. Monetary penalty of Rs.5.00 lakh has been imposed on The Waghodia Urban Co-operative Bank Ltd., Dist. Vadodara, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ read with ‘Loans and advances to directors etc. – directors as surety / guarantors – clarification’; ‘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’. Imposition of monetary penalty of Rs.2.00 lakh (Rupees Two Lakh only) on The Becharaji Nagarik Sahakari Bank Ltd., Dist. Mehsana, 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)’. The Baramati Sahakari Bank Ltd., Baramati, Pune, Maharashtra (the bank) has been levied with monetary penalty of Rs.2.00 lakh for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks.’ 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.