The Reserve Financial institution has imposed financial penalties on 4 co-operative banks for deficiencies in regulatory compliance. These banks are: Ordnance Tools Manufacturing unit Prarambhik Sahkari Financial institution Ltd, Vishwanathrao Patil Murgud Sahakari Financial institution Ltd, The Shibpur Co-operative Financial institution Ltd, The Chiplun City Co-operative Financial institution Ltd.
The Reserve Financial institution has imposed a financial penalty of ₹3.00 lakh on Ordnance Tools Manufacturing unit Prarambhik Sahkari Financial institution Ltd., Kanpur for non-compliance with particular instructions issued by RBI beneath Supervisory Motion Framework (SAF). The financial institution had supplied rate of interest on deposits greater than these supplied by State Financial institution of India in violation of particular instructions issued beneath SAF.
The Vishwanathrao Patil Murgud Sahakari Financial institution Ltd., Murgud, Maharashtra is penalised of ₹1.00 lakh for non-compliance with the instructions issued by RBI on ‘Publicity Norms and Statutory/Different Restrictions – UCBs’. The financial institution had sanctioned loans to its nominal members for goal aside from the prescribed beneath aforesaid instructions issued by RBI.
The RBI has imposed a financial penalty of ₹10,000 on The Shibpur Co-operative Financial institution Ltd., West Bengal for non-compliance with instructions issued by RBI on ‘Publicity Norms and Statutory/Different Restrictions – UCBs’. The financial institution had did not adjust to the RBI instructions on prudential inter-bank (gross) publicity restrict and prudential inter-bank counter-party restrict.
The apex financial institution has imposed a financial penalty of ₹2.00 lakh on The Chiplun City Co-operative Financial institution Ltd., Chiplun, Maharashtra for non-compliance with instructions issued by RBI on ‘Administration of Advances’ and ‘Upkeep of Deposit Accounts’. The financial institution had sanctioned gold loans beneath Bullet Reimbursement Scheme past the regulatory restrict and levied penal fees at fastened fee for non-maintenance of minimal stability in saving financial institution accounts as an alternative of proportionate to precise shortfall noticed.
The actions of Reserve Financial institution was based mostly 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: 17 Aug 2023, 08:27 PM IST
Supply: Live Mint