The Reserve Financial institution of India (RBI) on Monday stated it has imposed penalties on 4 cooperative banks—Bombay Mercantile Co-operative Financial institution, Tamil Nadu State Apex Co-operative Financial institution, Janata Sahakari Financial institution and Baran Nagrik Sahkari Financial institution—for contravention of assorted norms.
The central financial institution imposed a financial penalty of ₹13 lakh on Bombay Mercantile Co-operative Financial institution Ltd., Mumbai for contravention of the provisions of part 26-A learn with part 56 of the Banking Regulation Act, 1949 (BR Act). The financial institution didn’t switch eligible quantity to Depositor and Training and Consciousness Fund (DEAF) throughout the prescribed interval and transferred the identical with delay.
In a separate launch, the Reserve Financial institution stated a penalty of ₹13 lakh has been imposed on Janata Sahakari Financial institution, Pune for non-compliance with instructions on ‘Curiosity Price on Deposits’. The financial institution didn’t make fee of relevant curiosity on steadiness quantities mendacity within the present accounts of deceased particular person depositors / sole proprietorship issues, on the time of reimbursement to the claimant, the RBI stated in an announcement.
The central financial institution imposed a penalty of ₹16 lakhs on The Tamil Nadu State Apex Co-operative Financial institution for non-compliance with the instructions issued by the Nationwide Financial institution for Agriculture and Rural Growth (NABARD) on “Evaluation of Frauds – Pointers on Monitoring and Reporting System”.
The financial institution not solely didn’t switch eligible quantities to the Depositor Training and Consciousness Fund (DEAF) throughout the prescribed interval but in addition didn’t report a fraud to NABARD throughout the prescribed timeline and reported the identical with delay, the RBI stated in an announcement.
A financial penalty of ₹2 lakh has been imposed on Baran Nagrik Sahkari Financial institution, Baran, Rajasthan for contravention of sure norms. The financial institution was not in compliance with RBI instructions prohibiting grant of loans/advances/every other monetary lodging to kinfolk of its administrators and never reporting the identical in OSS-6 return to RBI.
The penalties are based mostly on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the banks with their prospects, the Reserve Financial institution stated.
Up to date: 24 Apr 2023, 09:51 PM IST