RBI Levies Monetary penalty on 5 Banks [Know Details]

The Reserve Bank of India (RBI) has imposed a Monetary Penalty of Rs. 13 Lakh on 5 Cooperative Banks for non-compliance with the RBI directions.

RBI imposed a monetary penalty of Rs. 2.00 lakh on The Thane District Central Co-operative Bank Limited, Thane (the bank) for violation of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).

A monetary penalty of Rs.3.00 lakh was imposed on The Kutch Mercantile Co-operative Bank Limited, Rapar, Dist. Kachchh, 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)’ and ‘Policy and Practice regarding Nominal Membership’ read with RBI directions on ‘Exposure Norms and Statutory/Other Restrictions- UCBs’.

Imposition of monetary penalty of Rs.50,000 on Bhabhar Vibhag Nagarik Sahakari Bank Limited, Bhabhar, District Banaskantha, 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 RBI directions on ‘Loans and Advances to directors etc. – directors as surety/guarantors – Clarification’.

The Progressive Mercantile Co-operative Bank Limited, Ahmedabad, Gujarat (the bank) has levied with monetary penalty of Rs.7.00 lakh for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.

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.50,000 was imposed on Shree Morbi Nagarik Sahakari Bank Limited of Gujarat.

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.