The Reserve Financial institution has imposed financial penalties on 4 co-operative banks for deficiencies in regulatory compliance. These banks are — Baroda Gujarat Gramin Financial institution, Vadodara, The Aska Co-operative Central Financial institution Ltd., Bally Cooperative Financial institution Ltd., Howrah and The Nabapalli Co-operative Financial institution Ltd., West Bengal.
The Reserve Financial institution imposed a financial penalty of ₹5.00 lakh on Baroda Gujarat Gramin Financial institution, Vadodara (Gujarat) for contravention of instructions issued by NABARD on ‘Frauds – Pointers for Classification, reporting and Monitoring of Frauds’. The financial institution didn’t report 5 fraud circumstances to NABARD inside prescribed timeline, leading to contravention of aforesaid instructions issued by NABARD.
The Aska Co-operative Central Financial institution Ltd., Aska was penalised ₹50,000 for non-compliance with sure provisions of the Reserve Financial institution’s –Know Your Buyer (KYC)) Route, 2016. The financial institution had didn’t put in place a system of periodic overview of threat categorisation of accounts.
The Reserve Financial institution imposed a financial penalty of ₹1,00,000 on Bally Cooperative Financial institution Ltd., Howrah, West Bengal for non-compliance with sure provisions of the central financial institution’-Know Your Buyer (KYC)) Route, 2016’. The financial institution had didn’t put in place a system of periodic overview of threat categorisation of accounts.
The apex financial institution imposed a financial penalty of ₹2,50,000 on The Nabapalli Co-operative Financial institution Ltd., West Bengal for non-compliance with the instructions issued by RBI on ‘Publicity Norms and Statutory/Different Restrictions – UCBs’ and sure provisions of the ‘Reserve Financial institution of India – (Know Your Buyer (KYC)) Route, 2016’. The financial institution had breached prudential inter-bank (gross) publicity restrict and prudential inter-bank counter-party restrict and didn’t put in place a system of periodic overview of threat categorisation of accounts.
The actions of Reserve Financial institution was primarily based on deficiencies in regulatory compliance and never supposed to pronounce upon the validity of any transaction or settlement entered into by the banks with its clients.
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Up to date: 14 Aug 2023, 10:43 PM IST
Supply: Live Mint