The Reserve Bank Monday imposed monetary penalties on seven co-operative banks for contravention of/non-adherence with the certain norms issued by the central bank for the co-operative banks.
The Reserve Bank of India (RBI) Monday imposed monetary penalties on seven co-operative banks for contravention of/non-adherence with the certain norms issued by the central bank for the co-operative banks.
These banks are Textile Traders Co-operative Bank Ltd, Ujjain Nagarik Sahakari Bank Maryadit, Panihati Co-operative Bank, The Berhampur Co-operative Urban Bank, Solapur Siddheshwar Sahakari Bank, Uttar Pradesh Co-operative Bank Limited and the Uttarpara Co-operative Bank, the central bank said in statements.
Textile Traders Co-operative Bank Ltd
The RBI imposed a monetary penalty of ?4.50 lakh on Textile Traders Co-operative Bank Ltd., Ahmedabad (Gujarat) (the bank) for contravention of directions issued by RBI on ‘Co-operative Banks - Interest Rate on Deposits’, ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions’, and ‘Know Your Customer (KYC)’, the central bank said in a statement.
The Uttarpara Co-operative Bank Ltd., West Bengal
The central bank said it has imposed a monetary penalty of ?2,50,000 on The Uttarpara Co-operative Bank Ltd., West Bengal (the bank) for contravention of/ non-adherence with the directions issued by RBI on “Exposure Norms and Statutory / Other Restrictions – UCBs" and “Know Your Customer (KYC)".
Solapur Siddheshwar Sahakari Bank Limited, Solapur (Maharashtra)
The RBl imposed a monetary penalty of ?1.50 lakh on Solapur Siddheshwar Sahakari Bank Limited, Solapur (Maharashtra) for contravention of/ non-adherence with the directions issued by RBI on Know Your Customer (KYC).
The Berhampur Co-operative Urban Bank Ltd., Odisha
The central bank said it has imposed a monetary penalty of ?1.00 lakh on The Berhampur Co-operative Urban Bank Ltd., Odisha for contravention of directions issued by RBI on (i) ‘Exposure Norms and Statutory/Other Restrictions - UCBs’ and (ii) ‘Know Your Customer (KYC)’.
Panihati Co-operative Bank Ltd
The Reserve Bank of India imposed a monetary penalty of ?2,50,000 on Panihati Co-operative Bank Ltd. for contravention of/ non-adherence with the directions issued by RBI on (i) “Exposure Norms and Statutory / Other Restrictions – UCBs" and (ii) “Know Your Customer (KYC) Direction, 2016".
Ujjain Nagarik Sahakari Bank Maryadit, Ujjain, Madhya Pradesh
The RBl imposed a monetary penalty of ?1.00 lakh on Ujjain Nagarik Sahakari Bank Maryadit, Ujjain (Madhya Pradesh) for contravention of/ non-adherence with the directions issued by RBI on ‘Exposure Norms & Statutory/Other Restrictions - UCBs’ and ‘Investments by Primary (Urban) Co-operative Banks’.
Uttar Pradesh Co-operative Bank Limited, Lucknow
The RBI imposed a monetary penalty of ?28,00,000 on Uttar Pradesh Co-operative Bank Limited, Lucknow, for non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 and the directions of RBI on “Customer Service in State / District Central Co-operative Banks (StCBs / DCCBs)".
In separate releases, the Reserve Bank said these co-operative banks had violated rules like violation of the Banking Regulation Act, 1950 and non-compliance with specific directions, relating to interest rates on deposits, failure to put into use any robust software as a part of effective identification and reporting of suspicious transactions; and levied penal charges for non-maintenance of minimum balances in inoperative accounts, during the financial year 2019-20, etc.
The central bank firther said the monetary penalties were 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.
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