BackRBI imposes monetary penalty on four co-operative banks. Details here
The Reserve Bank has imposed monetary penalties on four co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: The Citizens’ Co-operative Bank, HCBL Co-operative Bank, Shree Warana Sahakari Bank and The State Transport Co-operative Bank
PremiumThe Reserve Bank has imposed monetary penalties on four co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: The Citizens’ Co-operative Bank Ltd, HCBL Co-operative Bank Ltd, Shree Warana Sahakari Bank Ltd and he State Transport Co-operative Bank Ltd.
The Reserve Bank imposed a monetary penalty of ₹6.00 lakh on The Citizens’ Co-operative Bank Ltd., Jammu for non-compliance with the specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’ and directions issued under ‘Exposure norms and Statutory/ Other Restrictions - UCBs’. The bank had sanctioned fresh loans and advances and allowed cash credit facilities to be overdrawn in violation of specific directions issued under SAF, and also breached prudential inter-bank (gross) exposure limit and inter-bank counterparty limit.
The RBI imposed a monetary penalty of ₹11.00 lakh on HCBL Co-operative Bank Ltd., Lucknow, Uttar Pradesh for non-compliance with the directions issued by RBI on ‘loans and advances to directors, their relatives, and firms or concerns in which they are interested’ and specific directions issued by RBI under the Supervisory Action Framework (SAF). The bank had granted loans/advances to its director and their relatives and sanctioned fresh loans and advances to single borrowers in excess of 50% of applicable regularity limits and offered interest rates on deposits more than those offered by SBI in violation of specific directions issued under SAF.
The RBI imposed a monetary penalty of ₹1.00 lakh on Shree Warana Sahakari Bank Ltd., Kolhapur, Maharashtra for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts- Primary (Urban) co-operative Banks’. The bank was collecting a fixed penalty for shortfall in maintenance of minimum balance in the savings bank accounts instead of proportionate to the extent of shortfall.
The Reserve Bank imposed a monetary penalty of ₹2.00 lakh on The State Transport Co-operative Bank Ltd., Mumbai, Maharashtra for non-compliance with the directions issued by RBI on ‘The Depositor Education and Awareness Fund Scheme, 2014’. The bank failed to transfer amounts which were eligible for transfer to Depositor Education and Awareness Fund.
The actions of Reserve Bank was based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with its customers.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
