The Reserve Bank of India imposed monetary penalties on five urban cooperative banks and extended the period of directions on Padmashri Dr. Vithalrao Vikhe Patil Cooperative Bank for a further period of three months.
These UCBs are Gujarat based Lalbaug Cooperative Bank, Nawanagar Cooperative Bank, Vijapur Nagarik Sahakari Bank, West Bengal based Jaynagar Mozilpur People’s Cooperative Bank and Assam based Gauhati Cooperative Urban Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Lalbaug Co-operative Bank Ltd., Vadodara, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Priority Sector Lending (PSL) – Targets and Classification’ and specific directions issued by RBI on making contribution to the Micro and Small Enterprises (MSE) Refinance Fund due to shortfall in achievement of PSL.
A monetary penalty of Rs 2.50 has been imposed on The Nawanagar Co-operative Bank Ltd., Jamnagar, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are interested’ and ‘Financial Statements – Presentation and Disclosures’.
Similarly, a monetary penalty of Rs 1 lakh on the Vijapur Nagarik Sahakari Bank Ltd., Vijapur, Dist. Mehsana, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Know Your Customer’.
Besides, RBI imposed a monetary penalty of Rs 6.34 lakh on the Jaynagar Mozilpur People’s Co-operative Bank Ltd., West Bengal (the bank) for non-compliance with certain directions issued by RBI on ‘Priority Sector Lending (PSL) – Targets and Classification’ and specific directions issued by RBI on making contribution to the Micro and Small Enterprises (MSE) Refinance Fund due to shortfall in achievement of PSL.
The Reserve Bank of India imposed a monetary penalty of Rs 80,000 on The Gauhati Co-operative Urban Bank Limited (the bank) for non-compliance with the certain directions issued by RBI on ‘Know Your Customer (KYC)’ and ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’.
These penalties have been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and section 25 of the Credit Information Companies (Regulation) Act, 2005.