RBI imposes monetary penalty on five entities for violating rules

The central bank imposed a penalty of Rs 30.50 lakh and Rs 2 lakh on Midnapore People’s Co-operative Bank and Paul Merchants Finance Private Limited respectively.

The Reserve Bank of India (RBI) on August 24 said it has imposed monetary penalties on four cooperative bank and a non-banking financial company (NBFC) for violating rules.

The central bank imposed a penalty of Rs 30.50 lakh and Rs 2 lakh on Midnapore People’s Co-operative Bank and Paul Merchants Finance Private Limited, respectively.

It also imposed a penalty of Rs 2 lakh and Rs 1 lakh on Ratnagiri Urban Co-operative Bank and Municipal Co-operative Bank Ltd, respectively. RBI also imposed a penalty of Rs 1 lakh on Kolhapur Urban Co-operative Bank.

The central bank said that the penalties were due to deficiencies in regulatory compliance by the banks.

“The action is 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,” RBI said in different releases.