The Reserve Financial institution of India (RBI) on Monday imposed effective on eight cooperative banks for deficiencies of their regulatory compliances.
The eight banks which have been fines are: The Affiliate Co-operative Financial institution Ltd (Surat), The Varachha Co-operative Financial institution Ltd (Surat), Mogaveera Co-operative Financial institution Ltd (Mumbai), Vasai Janata Sahakari Financial institution (Palghar), Rajkot Peoples Co-operative Financial institution (Rajkot), Bhadradri Co-operative City Financial institution, The Jammu Central Co-operative Financial institution Ltd (Jammu), and Jodhpur Nagrik Sahakari Financial institution (Jodhpur).
The RBI has imposed a penalty of ₹4 lakh on Affiliate Co-operative Financial institution Ltd for contravention of instructions on ‘loans and advances and non-compliance with the Grasp Instructions on ‘Know Your Buyer (KYC)’.
It has additionally imposed a effective of ₹1 lakh on The Varachha Co-operative Financial institution Ltd, Surat for contravention of sure norms of The Depositor Schooling and Consciousness Fund Scheme, 2014.
Mogaveera Co-operative Financial institution Ltd, Mumbai has been penalised ₹2 lakh for non-compliance with sure instructions associated to KYC norms.
A financial penalty of ₹2 lakh has been imposed on Vasai Janata Sahakari Financial institution, Palghar for contravention of/non-compliance with the instructions issued by RBI on ‘Publicity Norms and Statutory/ Different Restrictions – UCBs’.
Additional, RBI has imposed a penalty of ₹1 lakh on Rajkot Peoples Co-operative Financial institution, Rajkot for contravention of instructions on ‘Loans and advances to administrators, kin and corporations/considerations through which they’re ‘.
A penalty of ₹2 lakh has been imposed on Bhadradri Co-operative City Financial institution for non-compliance with instructions issued by RBI on ‘Publicity Norms and Statutory/ Different Restrictions-UCBs’ and ‘Administration of Advances – UCBs’.
Penalty of 1 lakh every has been imposed on The Jammu Central Co-operative Financial institution Ltd, Jammu and the Jodhpur Nagrik Sahakari Financial institution, Jodhpur for contravention of sure norms.
The penalities are based mostly on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the banks with their respective prospects, the RBI mentioned.
Supply: Live Mint