RBI imposes monetary penalty on 4 co-operative banks. Details here
₹1,00,000 on The Tapindu Urban Co-operative Bank Limited, Patna for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’. The bank had failed to comply with RBI directions on prudential inter-bank exposure norms at the gross level.
The Islampur Urban Co-operative Bank Limited, Maharashtra was penalised of ₹2.00 lakh for non-compliance with certain provisions the Banking Regulation Act, 1949 and certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’ and ‘Maintenance of Deposit Accounts-UCBs’. The bank had not transferred the eligible amount to Depositor Education and Awareness Fund (DEAF) and had not conducted periodic review of risk categorisation of its customers as well as annual review of inoperative accounts.
The Mahabaleshwar Urban Co-operative Bank Limited, Maharashtra was also penalised of ₹2.00 lakh for non-compliance for contravention of certain provisions Banking Regulation Act, 1949 (BR Act), specific directions issued by RBI under Supervisory Action Framework (SAF), and directions issued by RBI on ‘Maintenance of Deposit Accounts’ and ‘Know Your Customer (KYC)’. The Co-operative bank had granted interest relief in a loan account of its ex-director, sanctioned fresh loans and renewed CC limits of its borrowers despite SAF restrictions and had not conducted annual review of inoperative accounts and periodic review of risk categorisation of its customers.
The apex bank imposed a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on Mangal Co-operative Bank Limited, Mumbai (the bank) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts’ and ‘Know Your Customer (KYC)’. The bank
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