The Reserve Bank of India imposed monetary penalties of Rs 3.25 lakh on two co-op banks for violation of its norms. RBI imposed a monetary penalty of Rs 2 lakh on Vidyasagar Central Co-operative Bank Limited, Midnapore, West Bengal (the bank) for non-compliance with the directions issued by RBI on ‘Housing Finance’.
Whereas, a monetary penalty of Rs 1.25 lakh has been imposed on the Aurangabad District Central Co-operative Bank Ltd., Bihar (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’.
These penalties have been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of BR Act and section 25 of the Credit Information Companies (Regulation) Act, 2005.