The Reserve Bank of India imposed a monetary penalty on five cooperative banks on Monday for breaching RBI’s rules and regulations. The total fine imposed was worth Rs 8 lakh.
These banks are Lakhavad Nagarik Sahakari Bank, Sanmitra Sahakari Bank, Manmandir Cooperative Bank, Sarvodaya Cooperative Bank and Contai Cooperative Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on the Lakhvad Nagarik Sahakari Bank Ltd., Lakhvad, Dist. Mehsana, Gujarat for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ read with ‘Loans and Advances to directors etc.
A monetary penalty of Rs 1.00 lakh has been imposed on the Sanmitra Sahakari Bank Ltd., Pune for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.
Besides, RBI imposed a monetary penalty of Rs 3.00 lakh on the Manmandir Co-operative Bank Limited, Vita for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Directions, 2016’ and ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.
Similarly, a monetary penalty of Rs 1.00 lakh has been imposed on Sarvodaya Co-operative Bank Limited, Mumbai for non-compliance with the specific directions issued by RBI under Supervisory Action Framework (SAF).
At last, the Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Contai Co-operative Bank for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Directions, 2016’.
These penalties have been imposed in exercise of powers conferred on RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949, says RBI in a release.