The Reserve Bank of India (RBI) has imposed penalties on five Gujarat-based cooperative banks for various lapses in complying with its regulations, with penalties varying from Rs 50,000 to Rs 5 lakh on each of them over the past one month.
In separate statements, the RBI in an order dated December 13, 2023, on Thursday said it imposed a Rs 5 lakh penalty on the Vadodara-based Shree Bharat Co-operative Bank for non-compliance with its directions on the placement of deposits with other banks by urban primary cooperative banks and flouting its norms on interest rate on deposits directions of 2016.
The monetary penalty on each of these five banks is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the bank with its customers, the central bank said.
In another order dated December 7, 2023, it imposed a monetary penalty of Rs 5 lakh on the Sankheda Nagarik Sahakari Bank based in Sankheda in the district of Chhotaudepur in Gujarat for non-compliance with directions on loans and advances to directors, relatives and firms/concerns in which they are interested and also for flouting norms on deposits with other banks by primary co-operative banks.
In an order dated December 8, 2023, it imposed Rs 1.50 lakh penalty on the Bhuj Commercial Co-operative Bank based in Kachchh district of Gujarat for not complying with the KYC directions and also for not meeting the interest rates on deposits. In a December 13 order, the RBI imposed a penalty of Rs 50,000 on the Limdi Urban Cooperative Bank based in Limdi in the Dahod district of Gujarat for non-compliance with the deposit rates.
In another order on December 7, 2023, the RBI imposed a penalty of Rs 1.50 lakh on the Co-operative Urban Bank based in Parlakhemundi in Gujarat for not complying with the directions on membership of credit information companies and exposure norms and statutory restrictions on UCBs.
(With PTI Inputs)
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