The Reserve Bank of India penalized a number of co-op banks and urban co-op banks on account of various acts of omission and commissions. Some of these include the City Co-operative Bank, Mysore, Pratap Co-operative Bank, Mumbai and Nagar Sahakari Bank, Maharajganj in UP, among others.
The Jammu and Kashmir State Co-operative Bank Limited, Srinagar was imposed a fine of Rs 30 lac by RBI for non-compliance with RBI directions on ‘Income Recognition, Assets Classification, Provisioning and Other Related Matters’.
The Reserve Bank of India levied a monetary penalty of Rs 5.00 lakh The Mysore Merchants Co-operative Bank Ltd., Mysore, Karnataka as the found did not adhere to directions issued under Management of Advances-UCBs.
The Pratap Co-operative Bank Ltd., Mumbai was penalized Rs 6 lac by RBI 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 2.00 lakh on The City Co-operative Bank Ltd., Mysore, Karnataka as the UCB was found guilty of non-adherence with directions issued under Management of Advances-UCBs.
The Reserve Bank of India imposed a penalty of Rs 4.00 lakh on Nagar Sahakari Bank Ltd., Maharajganj, UP. The UCB was guilty of non-compliance with directions issued under Supervisory Action Framework (SAF) by RBI.
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on the Banda Urban Co-operative Bank Ltd., Banda, U.P) for contravention of the directions issued by RBI on “Exposure Norms and Statutory / Other Restrictions – UCBs.”
In cases of all the penalized banks, RBI said that the 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.