The Reserve Bank of India imposed a monetary penalty of Rs 4.00 lakh on The Rajkot Commercial Co-operative Bank Ltd based in Rajkot (Gujarat). Indore based Vyaparik Audhyogik Sahakari Bank has also been fined by the RBI on the same day.
The UCB was found guilty of contravention of directions issued by RBI on ‘Prudential Norms Income Recognition, Asset Classification, Provisioning and Other Related Matters’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Guidelines for Classification and Valuation of Investments by Banks’.
Another UCB penalized by the RBI is Indore based Vyaparik Audhyogik Sahakari Bank in Madhya Pradesh. The UCB was fined for contravention of/ non-adherence with the Directions issued by RBI to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and Investments by Primary (Urban) Co-operative Banks.
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, clarified the RBI in both cases.
