The Reserve Bank of India has imposed monetary penalties on five cooperative banks for non-compliance with various regulatory norms. There are three urban cooperative banks in the list and two District Central Cooperative Banks.
These include three Gujarat-based banks—M S Cooperative Bank, Mansa Nagarik Sahakari Bank, and Vepar Udhyog Vikas Sahakari Bank—and two Bihar-based banks—National Central Cooperative Bank and Nawadah Central Cooperative Bank.
Issuing a press release on Monday, RBI imposed a monetary penalty of Rs 1.50 lakh on M.S. Co-operative Bank Ltd., Vadodara, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’ and ‘Know Your Customer (KYC)’.
A monetary penalty of Rs 50,000 has been imposed on the Mansa Nagarik Sahakari Bank Ltd., Dist. Gandhinagar, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’.
Besides, the Reserve Bank of India imposed a monetary penalty of Rs 1.50 lakh on the Vepar Udhyog Vikas Sahakari Bank Limited, Dist. Dahod, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Maintenance of Cash Reserve Ratio (CRR)’ and ‘Know Your Customer (KYC) norms’.
Similarly, Reserve Bank of India imposed a monetary penalty of Rs 4.10 lakh on the National Central Co-operative Bank Ltd., Bettiah, Bihar (the bank) for contravention of provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non – compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Master Direction – Know Your Customer (KYC) Direction, 2016’.
And, a monetary penalty of Rs 1.25 lakh has been imposed on the Nawadah Central Cooperative Bank Ltd., Bihar (the bank) for non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’.
These penalties have been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and section 25 of the Credit Information Companies (Regulation) Act, 2005.