The Reserve Bank of India imposed monetary penalties on three urban cooperative banks worth Rs 46 lakh. The apex bank also extended the period of direction on Ajantha Urban Cooperative Bank on Monday.
The RBI imposed fines on Greater Bombay Cooperative Bank, Gandhinagar Urban Cooperative Bank and Bharati Sahakari Bank.
A monetary penalty of Rs 25.00 lakh has been imposed on the Greater Bombay Co-operative Bank Limited, Mumbai (the bank) for non-compliance with certain directions issued by the RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks.
The Reserve Bank of India (RBI) imposed a monetary penalty of Rs1.00 lakh on the Gandhinagar Urban Co-operative Bank Ltd., 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’ read with ‘Loans and Advances to directors etc. – directors as surety/guarantors – Clarification’.
Besides, a monetary penalty of Rs 20.00 lakh has been imposed on the Bharati Sahakari Bank Limited, Pune (the bank) for non-compliance with certain directions issued by the RBI on ‘Frauds monitoring and reporting mechanism’.
This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The period of direction on Ajantha Urban Cooperative Bank has been extended for a further period of three months from the close of business on May 29, 2024 to the close of business on August 29, 2024, subject to review. All other terms and conditions of the Directive under reference shall remain unchanged.
It may be necessary to know that till 29th February 2024, the RBI has cancelled the banking license of 24 urban cooperative banks.
During the 2023-24 financial year, the Reserve Bank of India imposed 216 penalties totalling crores of rupees on cooperative banks on various acts of omission and commission.
