The Reserve Financial institution has imposed financial penalties on 4 co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: The Sarvodaya Sahakari Financial institution Ltd, Dhanera Mercantile Co-operative Financial institution Ltd, The Janata Co-operative Financial institution Ltd and Maninagar Co-operative Financial institution Ltd
The Reserve Financial institution imposed a financial penalty of ₹6.00 lakh on The Sarvodaya Sahakari Financial institution Restricted, Modasa, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and advances to administrators, kinfolk and corporations /considerations during which they’re ’ learn with ‘Loans and advances to administrators and so forth – administrators as surety/guarantors – Clarification’, ‘Placement of Deposits with Different Banks by Major (City) Co-operative Banks (UCBs)’ and ‘Curiosity Fee on Deposits – Instructions 2016’.
The financial institution had (i) sanctioned credit score services to relative of one in all its administrators and in addition whereby kinfolk of the administrators stood as guarantor (ii) breached inter-bank gross publicity restrict, (iii) breached inter-bank counterparty publicity restrict, and (iv) not paid curiosity on matured fastened deposits from the date of maturity until the date of its reimbursement on the price relevant to saving deposits or the contracted price of curiosity, whichever is decrease.
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The Reserve Financial institution has imposed a financial penalty of ₹6.50 lakh on Dhanera Mercantile Co-operative Financial institution Ltd., Dhanera, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and advances to administrators, kinfolk and corporations/considerations during which they’re ’; ‘Loans and advances to administrators and so forth. – administrators as surety / guarantors – clarification’ and on ‘Placement of Deposits with Different Banks by Major (City) Co-operative Banks (UCBs)’.
The financial institution had (i) sanctioned credit score services to its administrators / their kinfolk and in addition whereby their relative stood as guarantor, (ii) breached prudential inter-bank (gross) publicity restrict, and (iii) breached prudential inter-bank counter-party publicity restrict.
The RBI has imposed a financial penalty of ₹3.50 lakh on The Janata Co-operative Financial institution Ltd., Godhra, Dist. Panchmahal, Gujarat for non-compliance with the instructions issued by RBI on ‘Donations to Trusts and Establishments the place Administrators, their kinfolk maintain place or have an interest’ and ‘Loans and advances to administrators, kinfolk and corporations /considerations during which they’re ’ learn with ‘Loans and advances to administrators etc- administrators as surety/guarantors- Clarification’.
The financial institution had (i) made donation to a belief the place one of many administrators of the financial institution was a trustee, and (ii) sanctioned loans, whereby kinfolk of the financial institution’s administrators stood as guarantor.
The apex financial institution has imposed a financial penalty of ₹1.00 Lakh on Maninagar Co-operative Financial institution Ltd., Ahmedabad, Gujarat for non-compliance with the instructions issued by RBI on ‘Placement of Deposits with Different Banks by Major (City) Co-operative Banks (UCBs)’ and ‘Co-operative Banks – Curiosity Fee on Deposits’.
The financial institution had (i) breached prudential inter-bank counterparty publicity restrict, and (ii) not paid curiosity on overdue time period deposits from the date of maturity until the date of reimbursement on the price relevant to financial savings deposits or on the contracted price of curiosity, whichever is decrease.
The actions of Reserve Financial institution was primarily based on deficiencies in regulatory compliance and never 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: 03 Oct 2023, 06:34 PM IST
Supply: Live Mint