RBI slaps Rs 10 lakh penalty on four co-op banks

Mumbai, August 13

The RBI on Thursday stated it has imposed a complete penalty of Rs 10 lakh on 4 cooperative banks for deficiencies in regulatory compliance.

A penalty of Rs 5 lakh has been imposed on Jowai Co-operative Urban Bank Limited for contravention of the instructions issued by RBI on ‘Exposure Norms and Statutory/Other Restrictions-UCBs’, the central financial institution stated. 

Giving particulars, RBI stated the inspection/scrutiny report of the financial institution based mostly on its monetary place as on March 31, 2018 revealed, inter alia, contravention of/ non-compliance with the norms.

Based on the identical, a discover was issued to the financial institution asking it “to show cause as to why penalty should not be imposed” for non-compliance with the instructions.

After contemplating the financial institution’s reply, oral submissions made in the course of the private listening to and extra submission made after the private listening to, RBI got here to the conclusion that the aforesaid prices of non-compliance had been substantiated and warranted imposition of financial penalty, it stated.

The RBI has additionally imposed penalty of Rs 2 lakh every on The Krishnanagar City Co-operative Bank Limited and The Tura Urban Cooperative Bank Limited for comparable contraventions.

In a separate assertion, RBI stated a penalty of Rs 1 lakh has been slapped on The Co-operative Urban Bank Ltd for contravention of the instructions issued by it on ‘Exposure Norms and Statutory/Other Restrictions-UCBs’.

The RBI added that the actions on the banks are based mostly on deficiencies in regulatory compliance and never meant to pronounce upon the validity of any transaction or settlement entered into by the banks with their clients. PTI


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