Surat (Gujarat) Associate Co-operative Bank Ltd. was fined Rs 4 lakh for violating the directives on ‘Loans and Advances for Directors, Relatives, Institutions / Institutions / Ideas Interesting / Ideas’. Along with important suggestions on ‘Know Your Customer (KYC)’.
The Reserve Bank of India (RBI) on Monday fined eight cooperative banks for non-compliance with their regulatory requirements.
However, the RBI said the fine was based on shortcomings in compliance with the regulation.
Jammu Central Co-operative Bank Ltd. and Jodhpur Nagrik Co-operative Bank of Jammu were fined Rs 1 lakh each.
The eight banks that have been fined are Associate Co-operative Bank Limited (Surat), The Varachha Co-operative Bank Limited (Surat), Mogaveera Co-operative Bank Limited (Mumbai), Vasai Janata Sahakari Bank (Palghar), Rajkot People’s Co-operative Bank (Rajkot), Bhadradri Co-operative Urban Bank, Jammu Central Co-operative Bank Limited (Jammu), Jodhpur Nagrik Co-operative Bank (Jodhpur).
The Reserve Bank of India (RBI) on Monday fined eight cooperative banks for non-compliance.
Surat (Gujarat) Associate Co-operative Bank Ltd. was fined Rs 4 lakh for violating the directives on ‘Loans and Advances for Directors, Relatives, Institutions / Institutions / Ideas Interesting / Ideas’. Along with important suggestions on ‘Know Your Customer (KYC)’.
The RBI has fined Surat-based Drawing Co-operative Bank Ltd Rs 1 lakh for violating certain norms of the 2014 Depositor Education and Awareness Fund scheme.
Mumbai-based Mogaveera Co-operative Bank Ltd has been fined Rs 2 lakh for non-compliance with certain KYC norms.
The Vasai Janata Co-operative Bank in Palghar has been fined Rs 2 lakh for violating/failing to comply with RBI directives on ‘exposure norms and legal/other restrictions – UCBs’.
In addition, the RBI has fined the Rajkot People’s Co-operative Bank Rs 1 lakh for violating the directives on ‘Directors, relatives, institutions/loans and advances of interest to them’.
Bhadradri Co-operative Urban Bank has been fined Rs 2 lakh for non-compliance with RBI directives on ‘exposure norms / legal/other restrictions-UCBs’ and ‘Management of Advances-UCB’.
Jammu Central Co-operative Bank Ltd., Jodhpur Nagrik Co-operative Bank, and Jodhpur were fined Rs 1 lakh each for violating certain norms.
However, the RBI said the penalties were based on shortcomings in compliance with the regulation and not on the validity of any transaction or agreement made by banks with their respective customers.
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