The Reserve Financial institution has imposed financial penalties on 5 co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: The Patliputra Central Cooperative Financial institution Ltd, Patan Nagarik Sahakari Financial institution Ltd, The Mandal Nagarik Sahakari Financial institution Ltd, The Balasore Bhadrak Central Co-operative Financial institution Ltd, the Dhrangadhra Folks’s Co-operative Financial institution Ltd
The Reserve Financial institution imposed a financial penalty of ₹1.50 lakh on the Patliputra Central Cooperative Financial institution Ltd, Bihar for non-compliance with the instructions issued by RBI on ‘The Depositor Training and Consciousness Fund Scheme, 2014 – Part 26A of Banking Regulation Act, 1949 – Operational Tips’ and ‘Reserve Financial institution of India – (Know Your Buyer (KYC)) Instructions, 2016’.
The apex financial institution mentioned the Patliputra Central Cooperative Financial institution had not transferred eligible quantities to the Depositor Training and Consciousness Fund. The financial institution had additionally not categorized its prospects into numerous threat classes (low, medium and excessive), and in addition not put in place a system of periodic updation of KYC, the RBI added.
The Reserve Financial institution imposed a financial penalty of ₹1.50 lakh on Patan Nagarik Sahakari Financial institution Ltd., Patan, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and advances to administrators, kin and companies/considerations through which they’re ’ learn with ‘Loans and Advances to administrators and so on. – administrators as surety/guarantors – Clarification’ and ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. The RBI mentioned the Patan Nagarik Sahakari Financial institution had sanctioned a mortgage the place a relative of one of many administrators of the financial institution stood as guarantor; and breached the prudential inter-bank counterparty publicity restrict.
The banking regulator has imposed a financial penalty of ₹1.50 Lakh on the Mandal Nagarik Sahakari Financial institution Ltd., Mandal, Dist. Ahmedabad, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and advances to administrators, kin and companies/considerations through which they’re ’ learn with ‘Loans and Advances to Administrators and so on. – Administrators as surety/guarantors – Clarification’ and ‘Co-operative Banks – Curiosity Fee on Deposits’.
The RBI mentioned the Mandal Nagarik Sahakari Financial institution had sanctioned loans the place a relative of one of many administrators of the financial institution stood as guarantor, and not paid curiosity at the relevant charge on time period deposits which matured on a Sunday / vacation / non-business working day, and had been paid on the succeeding working days.
The financial institution additionally not paid curiosity on deposits withdrawn earlier than their maturity for the interval deposits remained with the financial institution and on matured overdue time period deposits from the date of maturity until the date of their reimbursement.
The Reserve Financial institution imposed a financial penalty of ₹50,000/- on the Balasore Bhadrak Central Co-operative Financial institution Ltd., Balasore for non-compliance with the instructions issued by RBI on “Membership of Credit score Info Corporations (CICs)”. The RBI mentioned the Balasore Bhadrak Central Co-operative Financial institution had didn’t add credit score data to Credit score Info Corporations.
The RBI has imposed a financial penalty of ₹1.00 lakh on the Dhrangadhra Folks’s Co-operative Financial institution Ltd., Dhrangadhra, Dist. Surendranagar, 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 apex financial institution mentioned the Dhrangadhra Folks’s Co-operative Financial institution had breached the inter-bank counterparty publicity restrict.
The RBI additional mentioned the financial penalties on the cooperative banks had 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 prospects.
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Up to date: 30 Nov 2023, 07:02 PM IST
Supply: Live Mint