RBI imposes penalties totaling Rs 5 lakh on 3 cooperative banks
The cooperative banks have been fined for failing to comply with certain directions issued by the central bank.
- Apr 4, 2022,
- Updated Apr 4, 2022 10:03 PM IST
The Reserve Bank of India (RBI) on Monday imposed monetary penalties totaling Rs 5 lakh on three cooperative banks for violating certain directions issued by the central bank. The Yashwant Cooperative Bank Ltd, Phaltan; Kokan Mercantile Co-operative Bank Ltd, Mumbai; and Samata Cooperative Development Bank Ltd, Kolkata are the three banks which have been fined.
The RBI imposed a penalty of Rs 2 lakh each on The Yashwant Cooperative Bank and Kokan Mercantile Co-operative Bank for contravention of non-compliance with directions issued by the central bank on income recognition, asset classification, provisioning and other related matters.
It also slapped a fine of Rs 1 lakh on Samata Cooperative Development Bank for contravention of directions issued by it on 'Exposure Norms & Statutory/Other Restrictions-UCBs', it said.
The central bank imposed the monetary penalties on the three cooperative banks in exercise of powers vested in RBI under the sections of Banking Regulation Act, 1949.
In all the cases, discrepancies were revealed in the scrutiny reports of the banks based on their financial position as on March 31, 2019. RBI had issued a notice to the banks advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions.
After considering the banks' replies and oral submissions made during personal hearing, the central bank came to the conclusion that the charges were substantiated and warranted imposition of monetary penalty.
In all the cases, the RBI said, the penalties were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by these banks with their respective customers.
Also read: India's GDP estimated to grow at 7.4% in FY23, RBI rate hike by FY-end: FICCI
Also read: RBI to remain accommodative, leave all rates unchanged in Apr MPC: BofA Sec
The Reserve Bank of India (RBI) on Monday imposed monetary penalties totaling Rs 5 lakh on three cooperative banks for violating certain directions issued by the central bank. The Yashwant Cooperative Bank Ltd, Phaltan; Kokan Mercantile Co-operative Bank Ltd, Mumbai; and Samata Cooperative Development Bank Ltd, Kolkata are the three banks which have been fined.
The RBI imposed a penalty of Rs 2 lakh each on The Yashwant Cooperative Bank and Kokan Mercantile Co-operative Bank for contravention of non-compliance with directions issued by the central bank on income recognition, asset classification, provisioning and other related matters.
It also slapped a fine of Rs 1 lakh on Samata Cooperative Development Bank for contravention of directions issued by it on 'Exposure Norms & Statutory/Other Restrictions-UCBs', it said.
The central bank imposed the monetary penalties on the three cooperative banks in exercise of powers vested in RBI under the sections of Banking Regulation Act, 1949.
In all the cases, discrepancies were revealed in the scrutiny reports of the banks based on their financial position as on March 31, 2019. RBI had issued a notice to the banks advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions.
After considering the banks' replies and oral submissions made during personal hearing, the central bank came to the conclusion that the charges were substantiated and warranted imposition of monetary penalty.
In all the cases, the RBI said, the penalties were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by these banks with their respective customers.
Also read: India's GDP estimated to grow at 7.4% in FY23, RBI rate hike by FY-end: FICCI
Also read: RBI to remain accommodative, leave all rates unchanged in Apr MPC: BofA Sec