RBI imposes monetary penalty on five co-operative banks. Details here
co-operative banks are: The Patliputra Central Cooperative Bank Ltd, Patan Nagarik Sahakari Bank Ltd, The Mandal Nagarik Sahakari Bank Ltd, The Balasore Bhadrak Central Co-operative Bank Ltd, the Dhrangadhra People’s Co-operative Bank Ltd The Reserve Bank imposed a monetary penalty of ₹1.50 lakh on the Patliputra Central Cooperative Bank Ltd, Bihar for non-compliance with the directions issued by RBI on ‘The Depositor Education and Awareness Fund Scheme, 2014 – Section 26A of Banking Regulation Act, 1949 - Operational Guidelines’ and ‘Reserve Bank of India – (Know Your Customer (KYC)) Directions, 2016’. The apex bank said the Patliputra Central Cooperative Bank had not transferred eligible amounts to the Depositor Education and Awareness Fund.
The bank had also not classified its customers into various risk categories (low, medium and high), and also not put in place a system of periodic updation of KYC, the RBI added. The Reserve Bank imposed a monetary penalty of ₹1.50 lakh on Patan Nagarik Sahakari Bank Ltd., Patan, Gujarat for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are Interested’ read with ‘Loans and Advances to directors etc.
- directors as surety/guarantors – Clarification’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’. The RBI said the Patan Nagarik Sahakari Bank had sanctioned a loan where a relative of one of the directors of the bank stood as guarantor; and breached the prudential inter-bank counterparty exposure limit.
The banking regulator has imposed a monetary penalty of ₹1.50 Lakh on the Mandal Nagarik Sahakari Bank Ltd., Mandal, Dist. Ahmedabad, Gujarat for non-compliance
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