The Reserve Bank of India (RBI) has imposed monetary penalties on eight cooperative banks for deficiencies in their regulatory compliances. The RBI also pointed out that it is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their respective customers.
In most cases, the violations are concerned with giving loans and advances to directors or related parties, overlooking know-your-customer (KYC) norms and lending exposure guidelines. If violations continue, the central bank takes even stronger measures to safeguard the interest of depositors.
These banks are Rajkot Peoples Cooperative Bank, Vasai Janata Sahakari Bank, Mogaveera Cooperative Bank, The Varachha Cooperative Bank, The Associate Cooperative Bank, Bhadradri Cooperative Urban Bank, The Jammu Central Co-operative Bank and Jodhpur Nagrik Sahakari Bank.
A penalty of Rs 4 lakh has been imposed on The Associate Co-operative Bank Ltd, Surat for contravention of directions on 'Loans and advances to directors, relatives and firms/concerns in which they are interested', and non-compliance with the Master Directions on 'Know Your Customer'.
Mogaveera Co-operative Bank Ltd, Mumbai has been penalised Rs 2 lakh for non-compliance with certain directions related to KYC norms. A monetary penalty of Rs 2 lakh has been imposed on Vasai Janata Sahakari Bank, Palghar for contravention of/non-compliance with the directions issued by RBI on 'Exposure Norms and Statutory/ Other Restrictions - UCBs'.
