RBI impose penalty on Banks: The Reserve Bank has imposed monetary penalty on four cooperative banks for deficiencies in regulatory compliance. Of these, one is from Bihar and three are from Maharashtra.
The names of these banks are Tapindu Urban Co-operative Bank Limited, Islampur Urban Co-operative Bank Limited, Mahabaleshwar Urban Co-operative Bank Limited and Mangal Co-operative Bank Limited.
This was the fault of Patna’s bank
The Reserve Bank imposed a monetary penalty of ₹1,00,000 on Tapindu Urban Co-operative Bank Ltd. (Patna) for non-compliance with the directions issued by RBI on ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. It was reported that the bank had failed to comply with RBI directions on prudential inter-bank exposure norms at the aggregate level.
Islampur Urban Co-operative Bank Ltd. (Maharashtra) for non-compliance with certain provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India (Know Your Customer, KYC) Guidelines, 2016 and ‘Maintenance of Deposit Accounts- UCBs’ A fine of ₹ 2.00 lakh has been imposed under Sec.
The bank did not transfer the eligible amount to the Depositor Education and Awareness Fund (DEAF) and also did not conduct annual review of inoperative accounts along with review of risk categorization of its customers.
The Mahabaleshwar Urban Cooperative Bank Limited (Maharashtra) has also been fined Rs 2 lakh. Further, RBI imposed a monetary penalty of ₹1.00 lakh on Mangal Sahakari Bank Ltd., (Mumbai) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts’ and ‘KYC’. The Reserve Bank’s action was based on deficiencies in regulatory compliance.
