On Thursday, the Reserve Bank of India imposed a monetary penalty on four Urban Cooperative Banks worth Rs 6 lakh, for violations of the RBI norms and regulations.
These banks are- Midnapore People’s Co-operative Bank Ltd., West Bengal, Kolhapur Urban Co-operative Bank Ltd., Kolhapur (Maharashtra), Municipal Co-operative Bank Ltd., Mumbai (Maharashtra) and Ratnagiri Urban Co-operative Bank Ltd., Ratnagiri, Maharashtra.
The Reserve Bank of India (RBI) has imposed, by an order dated August 14, 2023, a monetary penalty of Rs 2.00 lakh (Rupees Two Lakh only) on the Midnapore People’s Co-operative Bank Ltd., West Bengal (the bank) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘Know Your Customer (KYC) Direction, 2016’.
A monetary penalty of Rs 1.00 lakh (Rupees One Lakh only) has been imposed on the Kolhapur Urban Co-operative Bank Ltd., Kolhapur, Maharashtra (the bank) for non-compliance with directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.
Similarly, Reserve Bank of India (RBI) imposed a monetary penalty of Rs 1.00 lakh (Rupees One Lakh only) on The Municipal Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.
Besides, a monetary penalty of Rs 2.00 lakh (Rupees Two Lakh only) has been imposed on Ratnagiri Urban Co-operative Bank Ltd., Ratnagiri, Maharashtra (the bank) for non-compliance with certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949.
This action is based on the 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.