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RBI penalises four co-operative banks for rule violations

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

July 04, 2022 / 06:10 PM IST
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The Reserve Bank of India (RBI), on July 4, imposed a monetary penalty on four cooperative banks for rule violations.

The banking regulator has imposed a monetary penalty of Rs 2 lakh on Tamil Nadu-based The Palani Co-operative Urban Bank for violating directions issued under exposure norms and statutory, or other, restrictions for urban cooperative banks, the banking regulator said in a release.

It has also imposed a monetary penalty of Rs 2 lakh on Kolkata-based Dhakuria Cooperative Bank for not complying with the above mentioned guidelines and for violating the RBI’s Know Your Customer (KYC) norms, the regulator said in a separate release.

Further, the RBI has penalised Ulhasnagar-based Nav Jeevan Co-operative Bank with Rs 2 lakh for sanctioning certain loans in breach of the ceiling on unsecured advances.

It has also imposed a monetary penalty of Rs 1 lakh on Odisha-based Balangir District Central Cooperative Bank for violation or non-compliance with directions issued on disposal of non-banking assets.

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All these 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 central bank said.

Also read: RBI penalises two co-operative banks for rule violations

The central bank has been tightening its grip on regulated entities, specifically cooperative banks, to ensure that appropriate corporate governance practices are followed.

On June 27, the RBI had imposed a monetary penalty of Rs 10 lakh on Tamil Nadu-based The Tiruchengode Cooperative Urban Bank as it did not comply with directions issued on exposure norms and statutory or other restrictions pertaining to urban cooperative bank and Know Your Customer (KYC) guidelines.
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first published: Jul 4, 2022 05:28 pm
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