All 10 banks are co-operative banks. RBI had issued a statement on March 26 and 27 regarding the imposition of penalty on these banks. RBI says that the action taken on these banks is not intended to affect the validity of any transaction or agreement made by the bank with its customers.
The Reserve Bank of India has recently imposed a fine of up to Rs 60 lakh on 10 banks of the country. Fines have been imposed on these banks for not following various regulatory guidelines. All 10 banks are co-operative banks. These banks are from West Bengal, Uttar Pradesh, Tamil Nadu, Maharashtra and Himachal Pradesh. RBI had issued a statement on March 26 and 27 regarding the imposition of penalty on these banks. RBI says that the action taken by it is not intended to affect the validity of any transaction or agreement made by the bank with its customers. Let us know which 10 banks the Central Bank has imposed and how much fine…
Howrah District Central Co-operative Bank, Howrah (West Bengal)
RBI has imposed a fine of Rs 1 lakh on Howrah District Central Co-operative Bank Limited. This action has been taken for not following the KYC guidelines of the central bank. The bank failed to update KYC details regularly. There was lack of a system for risk classification of accounts. Therefore a fine was imposed. The inspection regarding the financial condition of the bank was done by the National Bank for Agriculture and Rural Development (NABARD).
Excellent Co-operative Bank, Mumbai (Maharashtra)
Mumbai-based Excellent Co-operative Bank Limited has been fined Rs 1 lakh for violating provisions related to Depositor Education and Awareness Fund. The bank did not transfer the required amount to this fund within the stipulated time. The statutory inspection of the bank regarding its financial position till March 31, 2023 was done by RBI.
Standard Urban Co-operative Bank, Aurangabad (Maharashtra)
RBI has imposed a fine of Rs 50,000 on Standard Urban Co-operative Bank Limited. This step has been taken for not transferring the required amount to the Depositor Education and Awareness Fund within the stipulated date as per banking rules. RBI had conducted statutory inspection of the bank regarding its financial position till March 31, 2022.
Rajapalayam Co-operative Urban Bank, Rajapalayam (Tamil Nadu)
Rajapalayam Co-operative Urban Bank Ltd has been fined Rs 75,000 for non-compliance with RBI directions in respect of loans and advances given to directors, their relatives and their associated companies. The bank gave loans to relatives of directors and sanctioned loans to nominal members in excess of the prescribed limit. RBI had conducted statutory inspection regarding the financial position of the bank till March 31, 2022.
Mandi Urban Co-operative Bank, Himachal Pradesh
The Reserve Bank of India has imposed a fine of Rs 6 lakh on Mandi Urban Co-operative Bank Limited, based in Mandi, Himachal Pradesh. Breach of prudential interbank exposure limits on gross and counterparty basis has been imposed on Karen. RBI had inspected the financial position of the bank till March 31, 2022.
Chikkamagaluru District Co-operative Central Bank Limited, Chikkamagaluru, Karnataka
RBI has imposed a fine of Rs 50,000 on this bank. This action has been taken for non-compliance of NABARD instructions on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. The bank did not report the frauds to NABARD on time. The statutory inspection regarding the financial position of the bank till March 31, 2023 was done by NABARD.
Dindigul Urban Co-operative Bank Limited, Dindigul, Tamil Nadu
RBI has imposed a penalty of Rs 25,000 on this bank. The penalty has been imposed for non-compliance with the central bank’s instructions on ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. The bank sanctioned loans to nominal members in excess of the prescribed limit. RBI had conducted statutory inspection regarding the financial position of the bank till March 31, 2022.
Janalakshmi Co-operative Bank, Nashik
RBI has imposed a fine of up to Rs 59.90 lakh on Janalakshmi Co-operative Bank. Non-compliance of certain Central Bank directions on ‘Constitution of Board of Management in Primary (Urban) Co-operative Banks (UCBs)’, ‘Exposure Norms and Statutory/Other Restrictions – UCBs’ and ‘Supervisory Action Framework for Primary (Urban) Co-operative Banks’ This penalty has been imposed for non-compliance of specific order under ‘Co-operative Banks (UCBs)’. The RBI investigation found that the bank failed to constitute its management board within the extended deadline given by the RBI, extended loans to its nominal members in excess of the prescribed limit and opened term deposits at a rate higher than SBI’s interest rate on the same tenor. /Renewed.
Solapur Janata Sahakari Bank, Solapur
RBI has imposed a fine of Rs 28.30 lakh on Solapur Janata Sahakari Bank. The penalty has been imposed on the bank for non-compliance with certain provisions of RBI directions on ‘Constitution of Board of Management in Primary (Urban) Co-operative Banks’ and orders/instructions issued under the Supervisory Action Framework. The statutory inspection of the bank regarding its financial position till March 31, 2022 was done by RBI.
Mathura District Cooperative Bank, Uttar Pradesh
RBI has imposed a fine of Rs 1 lakh on Mathura District Cooperative Bank for not complying with the provisions of certain sections of the Banking Regulation Act, 1949. The bank is accused of not disposing of an immovable property within the maximum period prescribed under the Banking Regulation Act, 1949. The property was not being used by the bank for its own purposes.
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