RBI imposes penalties on 4 cooperative banks

RBI | PC-Shutterstock

The Reserve Bank on Tuesday said it has imposed penalties on four co-operative banks, including a Rs 112.50 lakh fine on Hyderabad-based Andhra Pradesh Mahesh Co-operative Urban Bank, for contravention of certain regulatory directions.

A penalty of Rs 62.50 lakh has been imposed on The Ahmedabad Mercantile Co-operative Bank, Ahmedabad; Rs 37.50 lakh on SVC Co-operative Bank, Mumbai; and Rs 25 lakh on Saraswat Cooperative Bank, Mumbai.

The penalty on Andhra Pradesh Mahesh Co-operative Urban Bank was for non-compliance with directions issued by RBI contained in Master Directions on 'Interest Rate on Deposits' and 'Know Your Customer'. The Ahmedabad Mercantile Co-operative Bank has been penalised for violation of norms contained in Master Directions on 'Interest Rate on Deposits'.

As per the RBI, it imposed penalty on SVC Co-operative Bank for non-compliance with directions on 'Interest Rate on Deposits' and 'Frauds Monitoring and Reporting Mechanism'. Saraswat Cooperative Bank was penalised for non-compliance with directions on 'Interest Rate on Deposits' and 'Maintenance of Deposit Accounts'.