The Reserve Bank of India has penalized three banks on various counts of flouting of its norms. RBI imposed a monetary penalty of Rs 50.00 lakh on The Nasik Merchant’s Co-operative Bank for non-compliance with the directions issued by RBI on ‘Placement of deposits with other banks’ and ‘Interest Rate on Deposits’.
MSCB was also penalized by an order dated July 7, 2022. RBI imposed a penalty of Rs 37,50,000 on it. The Maharashtra State Co-operative Bank was faulted for non-compliance with the directions issued by NABARD on ‘Frauds – Guidelines for Classification, Reporting and Monitoring’.
The third bank was Bihar based National Central Cooperative Bank, Bettiah. The Reserve Bank of India imposed a penalty of ?2.00 lakh.
The UCB was found guilty of non-compliance with the directions issued by RBI on (i) The Depositor Education and Awareness Fund and (ii) Know Your Customer (KYC).
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 RBI in all the above cases.