RBI Imposes Monetary Penalty On 5 Co-operative Banks

New Delhi: The Reserve Bank of India has said that it has imposed monetary penalty on 5 Co-operative Banks. RBI has said that this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

RBI monetary penalty on The Co-operative Urban Bank Limited, Parlakhemundi, Odisha

“The Reserve Bank of India (RBI) has, by an order dated December 07, 2023, imposed a monetary penalty of ₹1.50 lakh (Rupees One lakh Fifty thousand only) on The Co-operative Urban Bank Limited, Parlakhemundi (the bank) for non-compliance with the directions issued by RBI on ‘Membership of Credit Information Companies (CICs)’ and ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. This penalty has been imposed in exercise of powers conferred on RBI under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005 (CIC Act) and Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 (BR Act),” said RBI.


RBI monetary penalty on Shree Bharat Co-operative Bank Limited, Vadodara, Gujarat

“The Reserve Bank of India (RBI) has, by an order dated December 13, 2023, imposed a monetary penalty of ₹5.00 lakh (Rupees Five lakh only) on Shree Bharat Co-operative Bank Limited, Vadodara, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘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’. This penalty has been imposed in exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949,” said RBI.


RBI monetary penalty on The Limdi Urban Co-operative Bank Limited, Limdi, dist. Dahod, Gujarat

“The Reserve Bank of India (RBI) has, by an order dated December 13, 2023, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Limdi Urban Co-operative Bank Limited, Limdi, dist. Dahod, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016’. This penalty has been imposed in exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949,” said RBI.


RBI monetary penalty on The Sankheda Nagarik Sahakari Bank Limited, Sankheda, Dist. Chhotaudepur, Gujarat

“The Reserve Bank of India (RBI) has, by an order dated December 07, 2023, imposed a monetary penalty of ₹5.00 lakh (Rupees Five lakh only) on The Sankheda Nagarik Sahakari Bank Limited, Sankheda, Dist. Chhotaudepur, Gujarat (the bank) for non-compliance with directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ read with RBI directions on ‘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)’. This penalty has been imposed in exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949,” said RBI.

RBI monetary penalty on The Bhuj Commercial Co-operative Bank Limited, Dist. Kachchh, Gujarat

“The Reserve Bank of India (RBI) has, by an order dated December 08, 2023, imposed a monetary penalty of ₹1.50 lakh (Rupees One lakh Fifty thousand only) on The Bhuj Commercial Co-operative Bank Limited, Dist. Kachchh, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Direction, 2016’ and ‘Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016’. This penalty has been imposed in exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949,” said RBI.