The Reserve Financial institution of India (RBI) on Tuesday directed Kerala-based Adoor Co-operative City Financial institution to perform solely as a non-banking establishment.
Accordingly, the RBI cancelled the banking licence dated January 03, 1987 granted to the The Adoor Co-operative City Financial institution, the banking regulator stated. The cancellation of licence is with impact from the shut of enterprise on April 24, 2023, the central financial institution stated in a launch.
“This makes it compulsory on the a part of The Adoor Co-operative City Financial institution Ltd, Adoor to cease conducting the enterprise of banking… together with acceptance of deposits from non-members with rapid impact,” the Reserve Financial institution added.
The central financial institution additional stated, The Adoor Co-operative City Financial institution will guarantee to repay unpaid and unclaimed deposits of non-members held by it, at any time when demanded, even after being notified as non-banking Establishment.
The crisis-ridden cooperative banks proceed to face the wrath of the RBI, which cancelled the licence of eight lenders in FY 2023.
On Monday, the RBI 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 had imposed a financial penalty of ₹13 lakh on Bombay Mercantile Co-operative Financial institution for contravention of the provisions of Banking Regulation Act, 1949. The financial institution didn’t switch eligible quantity to Depositor and Training and Consciousness Fund (DEAF) throughout the prescribed interval.
Equally, the RBI imposed a penalty of ₹13 lakh on Janata Sahakari Financial institution for non-compliance with instructions on ‘Curiosity Fee on Deposits’. And a penalty of ₹16 lakhs on The Tamil Nadu State Apex Co-operative Financial institution for non-compliance with the instructions issued by the NABARD on “Overview of Frauds – Pointers on Monitoring and Reporting System”.
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 family members of its administrators and never reporting the identical in OSS-6 return to RBI.
Up to date: 25 Apr 2023, 09:01 PM IST