The Reserve Financial institution of India (RBI) has imposed financial penalties on 4 co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: Jijamata Mahila Sahakari Financial institution Ltd, Shri Laxmikrupa City Co-operative Financial institution Ltd, The Konark City Cooperative Financial institution Ltd and The Chembur Nagarik Sahakari Financial institution Ltd.
The Reserve Financial institution imposed a financial penalty of ₹4.00 lakh on Jijamata Mahila Sahakari Financial institution Restricted, Pune for non-compliance with RBI instructions on ‘Reserve Financial institution of India – Know Your Buyer (KYC) Path, 2016’ and ‘Frauds in UCBs: Modifications in Monitoring and Reporting Mechanism’. The RBI stated the Jijamata Mahila Sahakari Financial institution had not performed periodic evaluation of threat categorisation of accounts; and had not reported a fraud to RBI throughout the stipulated timeline.
The apex financial institution imposed a financial penalty of ₹1.00 lakh on Shri Laxmikrupa City Co-operative Financial institution Restricted, Pune for non-compliance with RBI instructions on ‘Reserve Financial institution of India – Know Your Buyer (KYC) Path, 2016’. The banking regulator stated Shri Laxmikrupa City Co-operative Financial institution had not performed periodic evaluation of threat categorisation of its prospects.
The RBI imposed a financial penalty of ₹1.00 lakh on The Konark City Cooperative Financial institution Ltd., Ulhasnagar for non-compliance with the instructions issued by RBI on ‘Upkeep of Deposit Accounts – Main (City) Co-operative Banks’. The Konark City Cooperative Financial institution Ltd had imposed fastened penal expenses for shortfall in upkeep of minimal stability in financial savings financial institution accounts as a substitute of imposing penal expenses proportionate to the extent of shortfall, the RBI stated.
The Reserve Financial institution imposed a financial penalty of ₹1.00 lakh on The Chembur Nagarik Sahakari Financial institution Ltd., Mumbai for non-compliance with the instructions issued by RBI on ‘Upkeep of Deposit Accounts – Main (City) Co-operative Banks’. The Chembur Nagarik Sahakari Financial institution had imposed fastened penal expenses for shortfall in upkeep of minimal stability in financial savings financial institution accounts, as a substitute of imposing penal expenses proportionate to the extent of shortfall and had additionally did not notify its prospects that within the occasion of the minimal stability not being restored within the account inside a month from the date of discover, penal expenses can be relevant, the banking regulator added.
These penalties have been imposed within the train of powers conferred on RBI beneath sure provisions of the Banking Regulation Act, 1949, the banking regulator stated.
The RBI additional stated the financial penalties on the cooperative banks had been primarily based on deficiencies in regulatory compliance and weren’t supposed to pronounce upon the validity of any transaction or settlement entered into by the banks with its prospects.
Milestone Alert!Livemint tops charts because the quickest rising information web site on this planet 🌏 Click here to know extra.
Obtain The Mint Information App to get Each day Market Updates.
Extra
Much less
Revealed: 04 Dec 2023, 08:00 PM IST
Supply: Live Mint