RBI has imposed penalties on 8 co-operative banks for deficiencies in regulatory compliance

The Reserve Bank of India (RBI) has imposed penalties on 8 co-operative banks for deficiencies in regulatory compliance.  Master Directions on ‘Loans and Advances to Directors, Relatives and Firms/Entities in which they are interested’ and ‘Know Your Customer (KYC)’ on Associate Co-operative Bank Ltd., Surat (Gujarat), the central bank said.  Four lakh rupees have been imposed for non-compliance.

Bank fined for violation of rules

The RBI said that a fine of Rs one lakh has been imposed on Varachha Sahakari Bank Limited, Surat for violation of certain norms of the Depositor Education and Awareness Fund Scheme, 2014.

These banks are also involved in fines

RBI said a penalty of Rs 2 lakh has been imposed on Mogveera Co-operative Bank Ltd., Mumbai for non-compliance of certain instructions relating to KYC norms.  A monetary fine of Rs 2 lakh has also been imposed on Vasai Janata Sahakari Bank, Palghar.

Penalty imposed for giving loans and advances

In addition, the RBI imposed a fine of Rs one lakh on Rajkot People’s Co-operative Bank, Rajkot for contravention of the directions on ‘Loans and advances to directors, relatives and firms/entities in which they are interested’, the RBI said.  Is.  A fine of Rs 2 lakh has been imposed on the RBI on Bhadradri Co-operative Urban Bank.

RBI did not question the bank’s transactions

A fine of one lakh each has been imposed on Jammu Central Co-operative Bank Ltd., Jammu and Jodhpur Nagarik Sahakari Bank, Jodhpur for violation of certain norms.  RBI, however, said the penalty is based on deficiencies in regulatory compliance and does not question the validity of any transaction or agreement entered into by banks with their respective customers.