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.