RBI imposes penalty on seven co-operative banks for violating norms

The Reserve Financial institution of India (RBI) Monday imposed financial penalties on seven co-operative banks for contravention of/non-adherence with the sure norms issued by the central financial institution for the co-operative banks.

These banks are Textile Merchants Co-operative Financial institution Ltd, Ujjain Nagarik Sahakari Financial institution Maryadit, Panihati Co-operative Financial institution, The Berhampur Co-operative City Financial institution, Solapur Siddheshwar Sahakari Financial institution, Uttar Pradesh Co-operative Financial institution Restricted and the Uttarpara Co-operative Financial institution, the central financial institution mentioned in statements.  

Textile Merchants Co-operative Financial institution Ltd

The RBI imposed a financial penalty of 4.50 lakh on Textile Merchants Co-operative Financial institution Ltd., Ahmedabad (Gujarat) (the financial institution) for contravention of instructions issued by RBI on ‘Co-operative Banks – Curiosity Charge on Deposits’, ‘Buyer Safety – Limiting Legal responsibility of Clients of Co-operative Banks in Unauthorized Digital Banking Transactions’, and ‘Know Your Buyer (KYC)’, the central financial institution mentioned in an announcement. 

The Uttarpara Co-operative Financial institution Ltd., West Bengal

The central financial institution mentioned it has imposed a financial penalty of 2,50,000 on The Uttarpara Co-operative Financial institution Ltd., West Bengal (the financial institution) for contravention of/ non-adherence with the instructions issued by RBI on “Publicity Norms and Statutory / Different Restrictions – UCBs” and “Know Your Buyer (KYC)”.

Solapur Siddheshwar Sahakari Financial institution Restricted, Solapur (Maharashtra)

The RBl imposed a financial penalty of 1.50 lakh on Solapur Siddheshwar Sahakari Financial institution Restricted, Solapur (Maharashtra) for contravention of/ non-adherence with the instructions issued by RBI on Know Your Buyer (KYC).

The Berhampur Co-operative City Financial institution Ltd., Odisha

The central financial institution mentioned it has imposed a financial penalty of 1.00 lakh on The Berhampur Co-operative City Financial institution Ltd., Odisha for contravention of instructions issued by RBI on (i) ‘Publicity Norms and Statutory/Different Restrictions – UCBs’ and (ii) ‘Know Your Buyer (KYC)’.

Panihati Co-operative Financial institution Ltd

The Reserve Financial institution of India imposed a financial penalty of 2,50,000 on Panihati Co-operative Financial institution Ltd. for contravention of/ non-adherence with the instructions issued by RBI on (i) “Publicity Norms and Statutory / Different Restrictions – UCBs” and (ii) “Know Your Buyer (KYC) Path, 2016″.

Ujjain Nagarik Sahakari Financial institution Maryadit, Ujjain, Madhya Pradesh

The RBl imposed a financial penalty of 1.00 lakh on Ujjain Nagarik Sahakari Financial institution Maryadit, Ujjain (Madhya Pradesh) for contravention of/ non-adherence with the instructions issued by RBI on ‘Publicity Norms & Statutory/Different Restrictions – UCBs’ and ‘Investments by Main (City) Co-operative Banks’.

Uttar Pradesh Co-operative Financial institution Restricted, Lucknow

The RBI imposed a financial penalty of 28,00,000 on Uttar Pradesh Co-operative Financial institution Restricted, Lucknow, for non-compliance with the Reserve Financial institution of India (Know Your Buyer (KYC)) Instructions, 2016 and the instructions of RBI on “Buyer Service in State / District Central Co-operative Banks (StCBs / DCCBs)”.

In separate releases, the Reserve Financial institution mentioned these co-operative banks had violated guidelines like violation of the Banking Regulation Act, 1950 and non-compliance with particular instructions, referring to rates of interest on deposits, failure to place into use any sturdy software program as part of efficient identification and reporting of suspicious transactions; and levied penal costs for non-maintenance of minimal balances in inoperative accounts, through the monetary yr 2019-20, and so forth.

The central financial institution firther mentioned the financial penalties had been primarily based on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.

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Up to date: 26 Jun 2023, 08:30 PM IST