The Reserve Financial institution of India (RBI) on Monday slapped penalties on three cooperative banks for a number of non-compliance points. The penalties totaled ₹5 lakh.
The Yashwant Cooperative Financial institution Restricted, Phaltan, has been fined for ₹2 lakh for contravention of non-compliance with instructions issued by it on Revenue Recognition, Asset Classification, Provisioning and Different Associated Issues – UCBs, the RBI stated in an announcement.
In one other assertion, the central financial institution stated a penalty of ₹2 lakh has been imposed on Kokan Mercantile Co-operative Financial institution Ltd., Mumbai for related non-compliance.
The RBI has additionally imposed a penalty of ₹1 lakh on the Samata Cooperative Growth Financial institution Restricted, Kolkata, for contravention of instructions issued by it on ‘Publicity Norms & Statutory/Different Restrictions-UCBs’, the RBI stated in a separate submitting.
In all of the instances, the RBI stated the penalities are primarily based on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by these banks with their respective clients.
Supply: Live Mint