RBI imposes monetary penalty on four co-operative banks, one NBFC. Details here
non-banking financial company (NBFC) for deficiencies in regulatory compliance. The co-operative banks are: Shree Lodra Nagarik Sahakari Bank Ltd, Malpur Nagarik Sahakari Bank Ltd, Jolarpet Co-operative Urban Bank Ltd, Limbasi Urban Co-operative Bank and the NBFC is Early Salary Services Private Ltd.
The Reserve Bank imposed a monetary penalty of ₹4.00 lakh on Shree Lodra Nagarik Sahakari Bank Limited, Lodra, Dist. Gandhinagar, 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’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
The apex bank said the Shree Lodra Nagarik Sahakari Bank had (i) sanctioned a loan to a relative of one of its directors; (ii) sanctioned loans wherein relatives of its directors stood as guarantors; (iii) breached the prudential inter-bank gross exposure limit; and (iv) breached the prudential inter-bank counterparty exposure limit. The RBI imposed a monetary penalty of ₹3.50 lakh on Malpur Nagarik Sahakari Bank Limited, Malpur, Dist.
Aravalli, Gujarat for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’. The RBI said the Malpur Nagarik Sahakari Bank had not only breached the prudential inter-bank gross exposure limit but also breached the prudential inter-bank counterparty exposure limit.
The Reserve Bank imposed a monetary penalty of ₹50,000 on the Jolarpet Co-operative Urban Bank Limited, Dist. Vellore, Tamil Nadu for non-compliance with the directions issued by RBI on ‘Board of Directors - UCBs’ read with the directions issued by RBI on ‘Loans and advances to
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