The Reserve Financial institution has imposed financial penalties on 5 co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: Shri Mahila Sewa Sahakari Financial institution Ltd, Porbandar Vibhagiya Nagarik Sahkari Financial institution Ltd, Sarvodaya Nagarik Sahakari Financial institution Ltd, The Khambhat Nagarik Sahakari Financial institution Ltd and The Vejalpur Nagarik Sahkari Financial institution Ltd.
The Reserve Financial institution imposed a financial penalty of ₹2.50 lakh on Shri Mahila Sewa Sahakari Financial institution Ltd., Ahmedabad, Gujarat for non-compliance with the instructions issued by RBI on ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’ and ‘Reserve Financial institution of India (Co-operative Banks – Curiosity Price on Deposits) Instructions, 2016’.
The apex financial institution stated that the Shri Mahila Sewa Sahakari Financial institution had breached the prudential inter-bank counterparty publicity restrict, and never paid curiosity on matured time period deposits from the date of maturity until the date of their reimbursement on the relevant charge. The financial institution didn’t pay curiosity on time period deposits for the Sundays, holidays and non-business working days on which the identical had matured and which have been repaid on the succeeding working day, the RBI added.
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The RBI imposed a financial penalty of ₹2.00 lakh on Porbandar Vibhagiya Nagarik Sahkari Financial institution Ltd., Porbandar, Gujarat for non-compliance with the instructions issued by RBI on ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. The RBI stated that the Porbandar Vibhagiya Nagarik Sahkari Financial institution had breached inter-bank counterparty publicity restrict.
The banking regulator imposed a financial penalty of ₹1.00 lakh on Sarvodaya Nagarik Sahakari Financial institution Ltd., Himmatnagar, Gujarat for non-compliance with the instructions issued by RBI on ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. The RBI stated that the Sarvodaya Nagarik Sahakari Financial institution had breached inter-bank counter-party publicity restrict.
The Reserve Financial institution imposed a financial penalty of ₹50,000 on The Khambhat Nagarik Sahakari Financial institution Ltd., Khambhat, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and Advances to administrators, relations and corporations/issues through which they’re ’ learn with ‘Loans and Advances to Administrators and so forth. – Administrators as surety/guarantors – Clarification’. The RBI stated that the Khambhat Nagarik Sahakari Financial institution had sanctioned loans the place a relative of one of many administrators of the financial institution stood as guarantor.
The RBI imposed a financial penalty of ₹25,000 on the Vejalpur Nagarik Sahkari Financial institution Ltd., Vejalpur, dist. Panchmahal, Gujarat for noncompliance with the instructions issued by RBI on ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. The RBI stated that the Vejalpur Nagarik Sahkari Financial institution had breached the inter-bank counterparty publicity restrict.
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 stated.
The RBI additional stated the financial penalties on the cooperative banks have been based mostly on deficiencies in regulatory compliance and weren’t meant 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: 23 Nov 2023, 06:45 PM IST
Supply: Live Mint