RBI imposes monetary penalty on five co-operative banks. Details here
Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks for deficiencies in regulatory compliance. These co-operative banks are: The Manmandir Co-operative Bank Ltd, The Lakhvad Nagarik Sahakari Bank Ltd, Contai Co-operative Bank Limited, Sarvodaya Co-operative Bank Ltd, and Sanmitra Sahakari Bank Ltd.
The Reserve Bank imposed a monetary penalty of ₹3.00 lakh on The Manmandir Co-operative Bank Limited, Vita for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Directions, 2016’ and ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks’. The apex Bank said The Manmandir Co-operative Bank had not ensured periodic updation of KYC for high-risk customers as mandated by the RBI Directions, and had not conducted periodic review of risk categorization of accounts.
The bank had not conducted the annual review of inoperative or dormant accounts, the RBI added. The RBI imposed a monetary penalty of ₹2.00 lakh on The Lakhvad Nagarik Sahakari Bank Ltd, Lakhvad, Dist.
Mehsana, 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 Lakhvad Nagarik Sahakari Bank Ltd had sanctioned a loan to the relative of one of its directors and also sanctioned certain loans wherein the relatives of its directors stood as guarantors. The apex bank further said the Sahakari Bank breached the prudential inter-bank gross exposure limit as well as the prudential inter-bank
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