The Reserve Bank of India imposed monetary penalties on four cooperative banks of Maharashtra for breaching the RBI rules and regulations on Monday.
The fine has been imposed on the Koyana Sahakari Bank, Muslim Cooperative Bank, Kolhapur Urban Cooperative Bank and Sindhudurg District Central Cooperative Bank.
The RBI imposed a monetary penalty of Rs 2 lakh on Koyana Sahakari Bank Ltd., Karad, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters- UCBs’.
Similarly, a monetary penalty of Rs 3 lakh has been imposed on the Muslim Co-operative Bank Limited, Pune, Maharashtra for non-compliance with certain directions issued by the RBI on ‘Maintenance of Deposit Accounts –Primary (Urban) Co-operative Banks’.
Besides, Reserve Bank of India (RBI) imposed a monetary penalty of Rs 2 lakh on the Kolhapur Urban Co-operative Bank Limited, Kolhapur, Maharashtra for non-compliance with certain directions issued by the RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested.’
A monetary penalty of Rs 2 lakh has been imposed on the Sindhudurg District Central Co-operative Bank Limited, Maharashtra for violation of Section 20 of Banking Regulation Act, 1949 (BR Act) read with Section 56 of the Act.
These penalties have been imposed in exercise of powers vested in the RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.