The Reserve Bank of India (RBI) has taken regulatory action by imposing monetary penalties on four co-operative banks for deficiencies in regulatory compliance. The banks facing penalties are Jijamata Mahila Sahakari Bank Ltd, Shri Laxmikrupa Urban Co-operative Bank Ltd, The Konark Urban Cooperative Bank Ltd, and The Chembur Nagarik Sahakari Bank Ltd.
Jijamata Mahila Sahakari Bank Ltd:
A monetary penalty of ₹4.00 lakh has been imposed on Jijamata Mahila Sahakari Bank Limited, Pune. The penalty is related to non-compliance with RBI directions on ‘Reserve Bank of India – Know Your Customer (KYC) Direction, 2016,’ and ‘Frauds in UCBs: Changes in Monitoring and Reporting Mechanism.’ The bank failed to conduct periodic reviews of risk categorization of accounts and did not report a fraud to RBI within the stipulated timeline.
Shri Laxmikrupa Urban Co-operative Bank Ltd:
Shri Laxmikrupa Urban Co-operative Bank Limited, Pune, faces a monetary penalty of ₹1.00 lakh for non-compliance with RBI directions on ‘Reserve Bank of India – Know Your Customer (KYC) Direction, 2016.’ The bank did not conduct periodic reviews of the risk categorization of its customers.
The Konark Urban Cooperative Bank Ltd:
The RBI imposed a monetary penalty of ₹1.00 lakh on The Konark Urban Cooperative Bank Ltd., Ulhasnagar. This penalty is for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks.’ The bank had imposed fixed penal charges for the shortfall in maintaining the minimum balance in savings bank accounts.
The Chembur Nagarik Sahakari Bank Ltd:
The Chembur Nagarik Sahakari Bank Ltd., Mumbai, has been penalized with ₹1.00 lakh for non-compliance with RBI directions on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks.’ The bank had imposed fixed penal charges for the shortfall in maintaining the minimum balance in savings bank accounts without proportionate charges and had failed to notify customers about applicable penal charges.
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers. The penalties are imposed under certain provisions of the Banking Regulation Act, 1949.
