RBI imposes monetary penalties on eight co-operative banks

The Reserve Bank of India (RBI) has imposed penalties of more than Rs 12 lakh on eight co-operative banks across Madhya Pradesh, Maharashtra, West Bengal, Manipur, Gujarat, Haryana and Uttar Pradesh.

The highest penalty by RBI worth Rs 4 lakh has been imposed on Nabapalli Cooperative Bank, Barasat, West Bengal for not adhering to prudential inter-bank (gross) exposure limit and failing to comply with the prudential inter-bank counterparty limit.

Faiz Mercantile Co-operative Bank, Nasik, Maharashtra has got the least penalty of Rs 25,000 for granting loan to a relative of a director by violating norms.

Other banks which have been penalised include Jila Sahakari Kendriya Bank Maryadit in Madhya Pradesh, Amravati Merchants’ Co-operative Bank in Maharashtra, Manipur Women’s Cooperative Bank in Manipur, United India Co-operative Bank in Uttar Pradesh, Baghat Urban Co-operative Bank in Haryana, and Navnirman Co-operative Bank in Gujarat. Mostly a penalty amount of Rs 1 lakh has been imposed on these banks.

Some violations by these banks include not transferring eligible unclaimed deposits to the Depositor Education and Awareness Fund, delay in reporting frauds, and sanctioning unsecured loans.