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RBI penalises Jila Sahakari Kendriya Bank, Pragati Mahila Nagrik Sahakari Bank for rule violations

The RBI has been tightening its noose on regulated entities, specifically cooperative banks, to ensure that appropriate corporate governance practices are followed

June 20, 2022 / 06:30 PM IST

The Reserve Bank of India (RBI), on June 20, penalised Madhya Pradesh-based Jila Sahakari Kendriya Bank and Chhattisgarh-based Pragati Mahila Nagrik Sahakari Bank Maryadit for non-compliance of certain norms.

The banking regulator has imposed a monetary penalty of Rs 75,000 on Jila Sahakari Kendriya Bank for a delayed submission of statutory or off-site surveillance to the RBI and NABARD, according to a release.

ALSO READ: RBI penalises two co-operative banks for rule violations

Further, the bank had no system to generate alerts and monitor suspicious transactions in contravention of/non-compliance with the provisions of the Act and directions issued by RBI/NABARD on submission of returns and directions on Know Your Customer (KYC), the RBI said.

The RBI also imposed a monetary penalty of Rs 2 lakh on Pragati Mahila Nagrik Sahakari Bank as the lender granted loans based on guarantee given by relative of Directors and had not carried out periodic updation of KYC as per prescribed periodicity, the central bank said in a separate release.

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ALSO READ: RBI penalises two co-operative banks citing rule violations

Both the actions are 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, the RBI said.

The RBI has been tightening its noose on regulated entities, specifically cooperative banks, to ensure that appropriate corporate governance practices are followed.
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first published: Jun 20, 2022 06:30 pm
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