On Thursday, the Reserve Bank of India (RBI) imposed monetary penalties totaling Rs 36.50 lakh on five urban cooperative banks.
Shikshak Sahakari Bank in Nagpur was fined Rs 25 lakh, while the Cooperative Bank of Rajkot faced a penalty of Rs 8 lakh. The Maharashtra Nagari Sahakari Bank, Nashik Jilha Mahila Sahakari Bank, and Gandhidham Mercantile Cooperative Bank were also among those penalized.
The RBI also extended the period of directions for Thodupuzha Urban Cooperative Bank and Saibaba Janata Sahakari Bank by an additional three months.
Specifically, Shikshak Sahakari Bank Limited in Nagpur was fined Rs 25 lakh for failing to comply with RBI directions regarding exposure limits to single and group borrowers.
The Co-operative Bank of Rajkot Ltd. was penalized Rs 8 lakh for non-compliance with RBI directives on interest rates for deposits and Know Your Customer (KYC) requirements.
Maharashtra Nagari Sahakari Bank Limited in Latur was fined Rs 2 lakh for violations related to Income Recognition and Asset Classification (IRAC) norms and contraventions of sections 26A and 56 of the Banking Regulation Act, 1949.
Gandhidham Mercantile Co-operative Bank Limited in Kachchh was penalized Rs 1 lakh for failing to adhere to directions on donations to trusts and institutions where directors or their relatives hold positions or have an interest.
The Nashik Jilha Mahila Sahakari Bank Ltd. was fined Rs 50,000 for contraventions of section 26A(2) of the Banking Regulation Act.
These penalties were imposed under the RBI’s authority, as conferred by sections 47A(1)(c), 46(4)(i), and 56 of the Banking Regulation Act.