The Reserve Bank of India imposed monetary penalties on five cooperative banks worth Rs 60.30 lakh and extended the period of directions of Saibaba Janata Sahakari Bank, Maharashtra for a further period of three months.
The banks on which RBI imposed fines are Rajkot Nagarik Sahakari Bank, Zila Sahakari Bank, Kotdwar, Rajdhani Nagar Sahkari Bank, Dehradun District Cooperative Bank and Kangra Cooperative Bank.
The Reserve Bank of India imposed a monetary penalty of Rs 43.30 lakh on Rajkot Nagarik Sahakari Bank Ltd., Rajkot (the bank), for non-compliance with RBI directions on ‘Ban on loans and advances to directors and their relatives, and firms / concerns in which they are interested’, ‘Prohibition on opening of saving bank accounts in the names of certain bodies / organizations’ and ‘Maintenance of deposit accounts’.
A monetary penalty of Rs 5.00 lakh imposed on Zila Sahakari Bank Ltd., Garhwal, Kotdwar, Uttarakhand (the bank) for contravention of the provisions of section 20(1)(b) and section 26A(2) read with section 56 of the Banking Regulation Act, 1949 (BR Act).
Besides, a monetary penalty of Rs 5.00 lakh has been imposed on Rajdhani Nagar Sahkari Bank Limited, Lucknow (the bank) for non-compliance with directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.
Similarly, a monetary penalty of Rs 2.00 lakh imposed on District Co-operative Bank Limited, Dehradun, Uttarakhand (the bank) for contravention of the provisions of section 20 (1)(b) read with section 56 of the Banking Regulation Act, 1949 (BR Act).
The Reserve Bank of India (RBI) also imposed a monetary penalty of Rs 5.00 lakh (Rupees Five Lakh only) on the Kangra Co-operative Bank Ltd., New Delhi (the bank) for non-compliance with the directions issued by RBI on ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs), and ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) – A Graded Approach’.
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.