RBI’s scanner has zeroed in on many urban cooperative banks in Gujarat. Even while the ghost of Madhavpura Mercantile bank refuses to be vanquished, other UCBs are not making it easy for the apex bank. This week only three urban cooperative banks of the state have come under the scanner of Reserve Bank of India. They have been penalized for not adhering to the norms of RBI-a regimen which prevents UCBs from going Madhavpura Mercantile bank way.
Siddhi Cooperative bank of Ahmadabad has been penalized for violation of RBI instructions relating to non-disclosure of penalty levied in its balance sheet and inordinate delay in reporting of Securities Transaction Reports (STRs) without any cogent reason.
Sulaimani Co-operative Bank , Vadodara has been faulted with violation of operational instructions imposed on the bank by RBI, non-adherence to exposure ceiling prescribed for unsecured advances, non-reporting of loans and advances granted to Directors, non-compliance with KYC norms and AML guidelines, etc.
Earlier Harij Nagarik Sahakari Bank , Patan was found guilty of violation of Reserve Bank of India’s instructions relating to Section 20A of B.R. Act, 1949 and Anti Money Laundering (AML) guidelines.
The Reserve Bank of India had issued a show cause notice to each bank, in response to which the banks submitted a written reply. After considering the banks’ reply in the matter and submission made during the personal hearing, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.
Meanwhile, Madhavpura Mecantile Bank as reported earlier has forfeited its licence as it did not heed RBI instructions despite repeated reminders.