The Reserve Bank of India has imposed monetary penalties on four urban cooperative banks in Gujarat and the Sundargarh District Central Cooperative Bank in Odisha. Additionally, the RBI has extended the period of directions on Kerala based Thodupuzha Urban Cooperative Bank for three months and Maharashtra based Saibaba Janata Sahakari Bank by one month.
Gujarat based UCBs are Vijay Commercial Cooperative Bank, Rajula Nagrik Sahakari Bank, Karjan Nagarik Sahakari Bank and Amod Nagric Cooperative Bank.
Issuing a press release on Thursday, RBI said, “A monetary penalty of Rs 1.00 lakh has been imposed on the Vijay Commercial Co-operative Bank Ltd., Rajkot, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC) norms”.
The Reserve Bank of India imposed a monetary penalty of Rs 1.25 lakh on the Rajula Nagrik Sahakari Bank Ltd., Rajula, Dist. Amreli, Gujarat (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are Interested’ and ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.
Besides, a monetary penalty of Rs 2.10 has been imposed on the Karjan Nagarik Sahakari Bank Limited, Karjan, Dist. Vadodara, Gujarat (the bank) for contravention of provisions of sections 18 and 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’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Know Your Customer (KYC) norms’.
A monetary penalty of Rs 1.00 lakh has been imposed on the Amod Nagric Co-operative Bank Ltd., Amod, Dist. Bharuch, 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 ‘Know Your Customer (KYC) norms’.
The Reserve Bank of India imposed a monetary penalty of Rs 3 lakh on the Sundargarh District Central Co-operative Bank Ltd., Odisha (the bank) for contravention of provisions of sections 20 and 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC) norms’.
These penalties have been imposed in exercise of powers vested in RBI, conferred under provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.