The Reserve Bank of India (RBI) has levied monetary penalties on four cooperative banks and extended directions for the National Mercantile Cooperative Bank and Sikar Urban Cooperative Bank for an additional three months.
The fined institutions include Samarth Sahakari Bank, Raipur Jila Sahakari Kendriya Bank, Nagrik Sahakari Bank, and Vidisha Jila Sahakari Kendriya Bank.
Samarth Sahakari Bank Limited, based in Solapur, Maharashtra, received a fine of Rs 4.50 lakh for violating provisions under Section 12(2) and Section 56 of the Banking Regulation Act, 1949. The bank was found to be non-compliant with RBI’s directives on exposure norms, statutory restrictions for Urban Cooperative Banks (UCBs), and operational instructions outlined under the Supervisory Action Framework for UCBs.
Raipur’s Jila Sahakari Kendriya Bank Maryadit was fined Rs 1.50 lakh for breaching provisions of Section 26A, read in conjunction with Section 56 of the Banking Regulation Act.
Similarly, Nagrik Sahakari Bank Maryadit, also in Raipur, faced a penalty of Rs 3.50 lakh for failing to comply with RBI’s guidelines on exposure norms, statutory restrictions, and investment regulations for UCBs.
Lastly, Jila Sahakari Kendriya Bank Maryadit in Vidisha, Madhya Pradesh, was fined Rs 1 lakh for contravening Section 26A of the Banking Regulation Act.
The penalties were imposed under the powers conferred by Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act.
Regarding the extended directions for National Mercantile Cooperative Bank and Sikar Urban Cooperative Bank, RBI clarified that the extension should not be construed as a certification of the banks’ financial health.