RBI imposes financial penalty on 4 co-operative banks, one NBFC. Particulars right here

The Reserve Financial institution imposed a financial penalty of ₹4.00 lakh on Shree Lodra Nagarik Sahakari Financial institution Restricted, Lodra, Dist. Gandhinagar, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and advances to administrators, kin and corporations/issues wherein they’re ’ and ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’.

The apex financial institution mentioned the Shree Lodra Nagarik Sahakari Financial institution had (i) sanctioned a mortgage to a relative of one in every of its administrators; (ii) sanctioned loans whereby kin of its administrators stood as guarantors; (iii) breached the prudential inter-bank gross publicity restrict; and (iv) breached the prudential inter-bank counterparty publicity restrict.

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The RBI imposed a financial penalty of ₹3.50 lakh on Malpur Nagarik Sahakari Financial institution Restricted, Malpur, Dist. Aravalli, Gujarat for non-compliance with the instructions issued by RBI on ‘Placement of Deposits with Different Banks by Main (City) Co-operative Banks (UCBs)’. 

The RBI mentioned the Malpur Nagarik Sahakari Financial institution had not solely breached the prudential inter-bank gross publicity restrict but in addition breached the prudential inter-bank counterparty publicity restrict.

The Reserve Financial institution imposed a financial penalty of ₹50,000 on the Jolarpet Co-operative City Financial institution Restricted, Dist. Vellore, Tamil Nadu for non-compliance with the instructions issued by RBI on ‘Board of Administrators – UCBs’ learn with the instructions issued by RBI on ‘Loans and advances to administrators, their kin, and corporations/issues wherein they’re ’. The financial institution had prolonged loans to administrators and their kin, the RBI mentioned.

The Reserve Financial institution imposed a financial penalty of ₹25,000 on the Limbasi City Co-operative Financial institution Ltd., Limbasi, Dist. Kheda, Gujarat for non-compliance with the instructions issued by RBI on ‘Loans and advances to administrators, kin and corporations/issues wherein they’re ’ learn with the instructions issued by RBI on ‘Loans and Advances to Administrators and so forth. – Administrators as surety/guarantors – Clarification’. The banking regulator mentioned the financial institution had sanctioned a mortgage the place relative of one of many administrators of the financial institution stood as guarantor.

The Reserve Financial institution imposed a financial penalty of ₹3.20 lakh on Early Wage Providers Non-public Restricted, Pune for non-compliance with sure provisions of the “Non-Banking Monetary Firm – Non-Systemically Vital Non-Deposit taking Firm (Reserve Financial institution) Instructions, 2016″. The apex financial institution mentioned the Early Wage Providers Non-public Ltd had did not put in place a system of inside audit of all outsourced actions.

The actions of the Reserve Financial institution have been based mostly on deficiencies in regulatory compliance and weren’t supposed to pronounce upon the validity of any transaction or settlement entered into by the banks or the NBFC with its prospects.

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Up to date: 06 Nov 2023, 11:24 PM IST