The Reserve Financial institution has imposed financial penalties on 5 co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: Uma Co-operative Financial institution Ltd, Pij Folks’s Co-operative Financial institution Ltd, Mizoram Co-operative Apex Financial institution Ltd, Birbhum District Central Co-operative Financial institution Ltd. and Shihori Nagarik Sahakari Financial institution Ltd.
The Reserve Financial institution imposed a financial penalty of ₹7.00 lakh on Uma Co-operative Financial institution Ltd., Vadodara, Gujarat for contravention of instructions issued by RBI on ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. The apex financial institution stated the Uma Co-operative Financial institution had breached the prescribed inter-bank counterparty publicity restrict and in addition breached the prescribed inter-bank gross publicity restrict.
The RBI imposed a financial penalty of ₹2.00 lakh on Pij Folks’s Co-operative Financial institution Restricted, Pij, Dist. Kheda, Gujarat for non-compliance with the instructions issued by RBI on ‘Reserve Financial institution of India (Know Your Buyer (KYC)) Instructions, 2016’. The banking regulator stated the Pij Folks’s Co-operative Financial institution had failed to hold out periodic overview of danger categorisation of accounts.
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The Reserve Financial institution imposed a financial penalty of ₹2.00 lakh on Mizoram Co-operative Apex Financial institution Ltd., Aizawl for non-compliance with the instructions issued by RBI on ‘Housing Finance’ relevant to State Co-operative Banks. The apex financial institution stated that the Mizoram Co-operative Apex Financial institution’s whole publicity to housing finance was above the prescribed restrict.
The Reserve Financial institution imposed a financial penalty of ₹1.10 lakh on Birbhum District Central Co-operative Financial institution Ltd., Birbhum, West Bengal for non-compliance with the instructions issued by RBI on ‘Reserve Financial institution of India (Know Your Buyer (KYC)) Instructions, 2016’ and ‘Membership of Credit score Info Corporations (CICs)’. the banking regulator stated the Birbhum District Central Co-operative Financial institution had (i) failed to hold out periodic overview of danger categorisation of accounts, (ii) didn’t undertake danger categorisation of quite a lot of accounts; and (iii) didn’t acquire membership of three out of the 4 CICs.
The RBI imposed a financial penalty of ₹1.00 lakh on Shihori Nagarik Sahakari Financial institution Ltd., Shihori, Dist. Banaskantha, Gujarat for non-compliance with instructions issued by RBI on ‘Loans and advances to administrators, family members and companies or considerations by which they’re ’ learn with ‘Loans and advances to Administrators and so forth. – Administrators as surety or guarantors – Clarification’ and ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. The Reserve Financial institution stated the Shihori Nagarik Sahakari Financial institution had sanctioned loans the place family members of administrators of the financial institution stood as guarantors; and in addition breached the prescribed inter-bank counterparty publicity restrict.
The actions of the Reserve Financial institution had been based mostly on deficiencies in regulatory compliance and weren’t meant to pronounce upon the validity of any transaction or settlement entered into by the banks with its prospects.
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Up to date: 30 Oct 2023, 06:46 PM IST
Supply: Live Mint