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The Reserve Bank of India has recently imposed a fine of up to Rs 60 lakh on 10 banks of the country. Penalties have been imposed on these banks for not following various regulatory guidelines. All 10 banks are co-operative banks. These banks are from West Bengal, Uttar Pradesh, Tamil Nadu, Maharashtra and Himachal Pradesh. RBI had issued a statement on March 26 and 27 regarding imposing penalty on these banks. RBI says that the action taken by it is not intended to affect the validity of any transaction or agreement entered into by the bank with its customers. Let us know which 10 banks have been imposed by the Central Bank and how much fine…
Howrah District Central Co-operative Bank, Howrah (West Bengal)
RBI has imposed a fine of Rs 1 lakh on Howrah District Central Co-operative Bank Limited. This action has been taken for not following the KYC guidelines of the Central Bank. The bank failed to update KYC details regularly. There was lack of a system for risk classification of accounts. Therefore a fine was imposed. The inspection regarding the financial condition of the bank was done by National Bank for Agriculture and Rural Development (NABARD).
Excellent Cooperative Bank, Mumbai (Maharashtra)
Mumbai-based Utkrisht Co-operative Bank Ltd has been fined Rs 1 lakh for violating provisions related to Depositor Education and Awareness Fund. The bank did not transfer the required amount to this fund within the stipulated time. A statutory inspection was conducted by RBI regarding the financial position of the bank as on March 31, 2023.
Standard Urban Co-operative Bank, Aurangabad (Maharashtra)
RBI has imposed a fine of Rs 50,000 on Standard Urban Co-operative Bank Limited. This step has been taken for not transferring the required amount to the Depositor Education and Awareness Fund within the prescribed date as per banking rules. RBI had conducted a statutory inspection regarding the financial position of the bank till March 31, 2022.
Rajapalayam Co-operative Urban Bank, Rajapalayam (Tamil Nadu)
A fine of Rs 75,000 has been imposed on Rajapalayam Co-operative Urban Bank Ltd for non-compliance with RBI directions in respect of loans and advances given to directors, their relatives and their associated companies. The bank gave loans to relatives of directors and sanctioned loans to nominal members in excess of the prescribed limit. RBI had conducted a statutory inspection regarding the financial position of the bank as on March 31, 2022.
Mandi Urban Cooperative Bank, Himachal Pradesh
The Reserve Bank of India has imposed a fine of Rs 6 lakh on Mandi Urban Co-operative Bank Limited, based in Mandi, Himachal Pradesh. Karen has been charged with breaching prudential interbank exposure limits on a gross and counterparty basis. RBI had inspected the financial position of the bank till March 31, 2022.
Chikkamagaluru District Co-operative Central Bank Limited, Chikkamagaluru, Karnataka
RBI has imposed a fine of Rs 50,000 on this bank. This action has been taken for non-compliance of NABARD instructions on 'Frauds-Guidelines for Classification, Reporting and Monitoring'. The bank did not inform NABARD about the fraud on time. Statutory inspection was conducted by NABARD regarding the financial position of the bank as on March 31, 2023.
Dindigul Urban Co-operative Bank Limited, Dindigul, Tamil Nadu
RBI has imposed a fine of Rs 25,000 on this bank. The penalty has been imposed for non-compliance with the central bank's directions on 'Exposure Norms and Statutory/Other Restrictions – UCBs'. The bank sanctioned loans to nominal members in excess of the prescribed limit. RBI had conducted a statutory inspection regarding the financial position of the bank as on March 31, 2022.
Janalakshmi Cooperative Bank, Nashik
RBI has imposed a fine of up to Rs 59.90 lakh on Janalakshmi Co-operative Bank. Non-compliance with certain Central Bank instructions on ‘Composition of Management Boards in Primary (Urban) Co-operative Banks (UCBs)’, ‘Exposure Norms and Statutory/Other Restrictions – UCBs’ and ‘Supervisory Action Framework for Primary (Urban)’ . This penalty has been imposed on co-operative banks for non-compliance of specific orders under 'Co-operative Banks (UCB)'. The RBI investigation found that the bank failed to constitute its board of management within the extended time limit given by the RBI, gave loans to its nominal members in excess of the prescribed limit and issued fixed term loans at a rate higher than SBI's interest rate on the same period. Open a deposit. , /Renewed.
Solapur Janata Sahakari Bank, Solapur
RBI has imposed a fine of Rs 28.30 lakh on Solapur Janata Sahakari Bank. This penalty has been imposed on the bank for non-compliance with certain provisions of RBI directions on 'Constitution of Board of Management in Primary (Urban) Co-operative Banks' and orders/directions issued under the supervisory action framework. A statutory inspection was conducted by RBI regarding the financial position of the bank as on March 31, 2022.
Mathura District Cooperative Bank, Uttar Pradesh
RBI has imposed a fine of Rs 1 lakh on Mathura District Cooperative Bank for not complying with the provisions of certain sections of the Banking Regulation Act, 1949. The bank is accused of not disposing of the immovable property within the maximum period prescribed under banking. Regulation Act, 1949. The property was not being used by the bank for its own purposes.
