RBI penalized nine co-op banks on violations of its norms on Monday. Besides eight UCBs, there is a DCCB namely Jila Sahakari Kendriya Bank Maryadit, which has also been penalized by the regulator.
These banks include the Jamshedpur Urban Cooperative Bank, Krishna Mercantile Co-operative Bank, Renuka Nagarik Sahakari Bank Maryadit, Berhampur Cooperative Urban Bank, Kendrapara Urban Co-operative Bank, Jila Sahakari Kendriya Bank Maryadit, Osmanabad Janata Sahakari Bank, the Santrampur Urban Co-operative Bank, and The Nawanagar Co-operative Bank.
Highest penalty is Rs 3.1 lac while the lowest one is Rs 25k. In its release, RBI clarifies that these actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with its customers.