The Reserve Bank of India imposed a penalty on four cooperative banks for violations of RBI rules and regulations on Monday. The fine has been imposed worth Rs 8.50 lakh.
These banks are Devika Urban Co-operative Bank Ltd., Udhampur, J & K, Dahanu Road Janata Co-operative Bank Ltd., Palghar, Maharashtra, WalchandNagar Sahakari Bank Ltd., Pune, Maharashtra and Shree Co-operative Bank Limited, Vadodara (Gujarat)
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3.00 lakh (Rupees Three Lakh only) on Devika Urban Co-operative Bank Ltd., Udhampur, J & K (the bank) for non-compliance with the directions issued by RBI on sanction of loans and advances to directors, relatives and firms/concerns in which they are interested.
Besides, A monetary penalty of Rs 1.00 lakh (Rupees One lakh only) has been imposed on the Dahanu Road Janata Cooperative Bank Ltd., Palghar, Maharashtra (the bank) for non-compliance with specific directions issued by RBI under the Supervisory Action Framework (SAF).
Similarly, RBI imposed a monetary penalty of Rs 4.00 lakh (Rupees Four Lakh only) on WalchandNagar Sahakari Bank Ltd., Pune, Maharashtra (the bank) for non-compliance with certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016.
RBI imposed a monetary penalty of Rs 50,000/- (Rupees Fifty Thousand only) on Shree Co-operative Bank Limited, Vadodara, Gujarat (the bank) for non-compliance with direction issued by RBI on ‘Loans and advances to directors, relatives, firms/concerns in which they are interested’.
This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949.
This action is based on deficiencies 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.