The Reserve Financial institution of India (RBI) has imposed financial penalties on 5 cooperative banks for deficiencies in regulatory compliance. These co-operative banks are: Indapur City Co-operative Financial institution Ltd, Janakalyan Sahakari Financial institution Ltd, The Patan City Co-operative Financial institution Ltd, Pune Retailers Co-operative Financial institution Ltd and Pune Municipal Company Servant’s Co-operative City Financial institution Ltd.
The Reserve Financial institution imposed a financial penalty of ₹5.00 lakh on Indapur City Co-operative Financial institution Ltd., Pune, Maharashtra for non-compliance with instructions issued by RBI on ‘Investments by Major (City) Co-operative Banks’, ‘Upkeep of Deposit Accounts – Major (City) Co-operative Banks’, and ‘Revenue Recognition, Asset Classification, Provisioning and Different Associated Issues – UCBs’. The apex financial institution mentioned the Indapur City Co-operative Financial institution had not adhered to the prudential inter-bank gross publicity restrict. The co-operative Financial institution had imposed mounted penal costs for shortfall in upkeep of minimal stability in financial savings financial institution accounts, as a substitute of imposing penal costs proportionate to the extent of shortfall; and didn’t categorised sure accounts as Non-Performing Property (NPA).
The RBI imposed a financial penalty of ₹5.00 lakh on Janakalyan Sahakari Financial institution Restricted, Mumbai for non-compliance with the instructions issued by RBI on ‘Reporting of Giant Exposures to Central Repository of Info on Giant Credit (CRILC)’. The banking regulator mentioned that the Janakalyan Sahakari Financial institution had not reported credit score data pertaining to sure eligible mortgage accounts to the CRILC reporting platform of RBI, throughout the prescribed timeline.
The apex financial institution imposed a financial penalty of ₹2.00 lakh on The Patan City Co-operative Financial institution Restricted, Satara, Maharashtra for contravention of the provisions of Part 26A learn with Part 56 of the Banking Regulation Act, 1949 (BR Act) and for non-compliance with the instructions issued by RBI on ‘The Depositor Training and Consciousness Fund’. The Patan City Co-operative Financial institution Restricted had not transferred the eligible quantities to the Depositor Training and Consciousness Fund throughout the prescribed interval, the RBI mentioned.
The Reserve Financial institution imposed a financial penalty of ₹1.00 lakh on Pune Retailers Co-operative Financial institution Restricted, Pune for non-compliance with the instructions issued by RBI on ‘Upkeep of Deposit Accounts – Major (City) Co-operative Banks’. The RBI mentioned the Pune Retailers Co-operative Financial institution had not carried out an annual overview of inoperative/dormant accounts.
The RBI imposed a financial penalty of ₹1.00 lakh on Pune Municipal Company Servant’s Co-operative City Financial institution Restricted, Pune for non-compliance with RBI instructions on ‘Upkeep of Deposit Accounts – Major (City) Co-operative Banks’. The banking regulator mentioned the Pune Municipal Company Servant’s Co-operative City Financial institution not carried out annual overview of inoperative/dormant accounts.
These penalties have been imposed within the train of powers conferred on RBI underneath sure provisions of the Banking Regulation Act, 1949, the banking regulator mentioned.
The RBI additional mentioned the financial penalties on the cooperative banks have been based mostly on deficiencies in regulatory compliance and weren’t supposed to be pronounced upon the validity of any transaction or settlement entered into by the banks with its prospects.
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Printed: 14 Dec 2023, 06:52 PM IST
Supply: Live Mint