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

The Reserve Financial institution imposed a financial penalty of ₹48.30 lakh on The Nasik Service provider’s Co-operative Financial institution Ltd., Nashik for non-compliance with the instructions issued by RBI on ‘Frauds in UCBs: Modifications in Monitoring and Reporting mechanism’ and on ‘Upkeep of Deposit Accounts’. The banking regulator mentioned Nasik Service provider’s Co-operative Financial institution had reported fraud instances with delay, and levied penal fees for non-maintenance of minimal balances in dormant or inoperative financial savings financial institution (SB) accounts. The co-operative levied penal fees for non-maintenance of minimal balances in SB accounts with out notifying the shoppers, the RBI added.

The RBI imposed a financial penalty of ₹15 lakh on the Mehsana City Co-operative Financial institution Ltd., Mehsana for non-compliance with the instructions issued by RBI on ‘Curiosity Charge on Deposits’. The Reserve Financial institution mentioned the Mehsana City Co-operative Financial institution had opened Financial savings Financial institution accounts of ineligible trusts, whose whole earnings weren’t exempted from fee of income-tax beneath the Revenue-tax Act, 1961.

The Sangli Sahakari Financial institution Restricted (Mumbai) confronted a financial penalty of ₹2.00 lakh imposed by the Reserve Financial institution for non-compliance with the instructions issued by RBI on ‘Board of Administrators-UCBs’. The banking regulator mentioned the Sangli Sahakari Financial institution Restricted had renewed a mortgage given to a relative of one in every of its administrators.

The Reserve Financial institution imposed a financial penalty of ₹25,000 on the Pudukkottai Co-operative City Financial institution Ltd., Pudukkottai, Tamil Nadu for non-compliance with the instructions issued by RBI on ‘Board of Administrators – UCBs’. The apex financial institution mentioned the Pudukkottai Co-operative City Financial institution Ltd had prolonged loans to its administrators opposite to the banking norms.

The RBI imposed a financial penalty of ₹1.50 lakh on Sappers Finance and Consultancy Pvt Ltd., Kolkata for non-compliance with the instructions issued by RBI on (i) ‘Requirement for acquiring prior approval of RBI in instances of acquisition/switch of management of Non-Banking Monetary Firms (NBFCs)’; and (ii) ‘Non-Banking Monetary Firm Returns (Reserve Financial institution) Instructions, 2016’ learn with instructions issued by RBI on ‘Format of Statutory Auditors’ Certificates (SAC) to be submitted by NBFCs’.

The Reserve Financial institution mentioned the NBFC had not solely did not receive prior approval of the banking regulator for change of administration but additionally did not submit relevant returns and the statutory auditor’s certificates to RBI.

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

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Up to date: 20 Nov 2023, 09:15 PM IST