RBI imposes monetary penalty on four co-operative banks. Details here

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₹2.00 lakh on The Becharaji Nagarik Sahakari Bank Ltd., Mehsana of 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 bank had breached prudential inter-bank counter-party exposure limit.

The Waghodia Urban Co-operative Bank Ltd., Vadodara of Gujarat is penalised of ₹5.00 lakh for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms or concerns in which they are interested’ read with ‘Loans and advances to directors etc. – directors as surety or guarantors – clarification’; ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016.’ The bank had sanctioned credit facilities to individuals where the relatives of its directors stood as guarantor.

It had breached prudential inter-bank counter-party exposure limit, and had not paid interest on matured recurring deposits from the date of maturity till the date of repayment at the rate applicable to saving deposits or at the contracted rate of interest, whichever is lower. Further, the bank had not paid interest on term deposits for the Sundays/ holidays/ non-business working days, on which the same had matured and which were repaid on the succeeding working days.

The Reserve Bank imposed a monetary penalty of ₹5.00 Lakh on The Viramgam Mercantile Co-operative Bank Ltd., Ahmedabad, Gujarat for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors etc. – directors as surety or guarantors – Clarification’, ‘Placement of Deposits with Other Banks by Primary (Urban)