The Reserve Bank of India has imposed a penalty on Mehsana Urban Co-operative Bank for non-compliance with certain provisions of the Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016.
As a result of noncompliance with various norms, the Reserve Bank of India (RBI) on Monday imposed sanctions on eight cooperative banks, including a fine of Rs 40 lakh on Mehsana Urban Co-operative Bank, Gujarat.
It said a penalty of Rs 7 lakh has been imposed on Indapur Urban Cooperative Bank, Indapur (Maharashtra) for contravention of certain provisions related to exposure norms, as it is said in another statement.
There has been a penalty imposed for non-compliance with Know Your Customer (KYC) regulations, Besides, three banks — Warud Urban Co-operative Bank, Warud (Maharashtra), Jila Sahakari Kendriya Bank Maryadit, Chhindwara (Madhya Pradesh) and the Yavatmal Urban Co-operative Bank, Yavatmal (Maharashtra).
For non-compliance with certain KYC requirements, Chhattisgarh Rajya Sahakari Bank Maryadit, Raipur (Chhattisgarh) has been fined Rs 25 lakh. The two other banks on which penalty has been imposed are Garha Co-operative Bank Limited, Guna (Madhya Pradesh) and the Goa State Co-operative Bank Panaji.
According to RBI, added that the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.