RBI imposes Monetary Penalty on 4 Co-operative Banks; Know Details

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.8.25 Lakhs on 4 Cooperative Banks for non-compliance with RBI directions.

RBI imposed a monetary penalty of Rs.25,000 on The Limbasi Urban Co-operative Bank Ltd., Limbasi, Dist. Kheda, 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 the directions issued by RBI on ‘Loans and Advances to Directors etc. – Directors as surety/guarantors – Clarification’.

A monetary penalty of Rs.3.50 lakh on Malpur Nagarik Sahakari Bank Limited, Malpur, Dist. Aravalli, 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)’.

Imposition of monetary penalty of Rs.4.00 lakh on Shree Lodra Nagarik Sahakari Bank Limited, Lodra, Dist. Gandhinagar, 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’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.

The Jolarpet Co-operative Urban Bank Limited, Dist. Vellore, Tamil Nadu (the bank) has levied with a monetary penalty of Rs.50,000 for non-compliance with the directions issued by RBI on ‘Board of Directors – UCBs’ read with the directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’.

This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47-A (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.