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 Sarvodaya Sahakari Bank, Dhanera Mercantile Co-operative Bank, The Janata Co-operative Bank and Maninagar 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 Sarvodaya Sahakari Bank Ltd, Dhanera Mercantile Co-operative Bank Ltd, The Janata Co-operative Bank Ltd and Maninagar Co-operative Bank Ltd
The Reserve Bank imposed a monetary penalty of ₹6.00 lakh on The Sarvodaya Sahakari Bank Limited, Modasa, 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’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Interest Rate on Deposits - Directions 2016’.
The bank had (i) sanctioned credit facilities to relative of one of its directors and also wherein relatives of the directors stood as guarantor (ii) breached inter-bank gross exposure limit, (iii) breached inter-bank counterparty exposure limit, and (iv) not paid interest on matured fixed deposits from the date of maturity till the date of its repayment at the rate applicable to saving deposits or the contracted rate of interest, whichever is lower.
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The Reserve Bank has imposed a monetary penalty of ₹6.50 lakh on Dhanera Mercantile Co-operative Bank Ltd., Dhanera, 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’; ‘Loans and advances to directors etc. – directors as surety / guarantors – clarification’ and on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’.
The bank had (i) sanctioned credit facilities to its directors / their relatives and also wherein their relative stood as guarantor, (ii) breached prudential inter-bank (gross) exposure limit, and (iii) breached prudential inter-bank counter-party exposure limit.
The RBI has imposed a monetary penalty of ₹3.50 lakh on The Janata Co-operative Bank Ltd., Godhra, Dist. Panchmahal, Gujarat for non-compliance with the directions issued by RBI on ‘Donations to Trusts and Institutions where Directors, their relatives hold position or are interested’ and ‘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’.
The bank had (i) made donation to a trust where one of the directors of the bank was a trustee, and (ii) sanctioned loans, wherein relatives of the bank’s directors stood as guarantor.
The apex bank has imposed a monetary penalty of ₹1.00 Lakh on Maninagar Co-operative Bank Ltd., Ahmedabad, Gujarat for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Co-operative Banks - Interest Rate on Deposits’.
The bank had (i) breached prudential inter-bank counterparty exposure limit, and (ii) not paid interest on overdue term deposits from the date of maturity till the date of repayment at the rate applicable to savings deposits or at the contracted rate of interest, whichever is lower.
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.
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