RBI Levies Fines On Five Co-op Banks
The RBI has levied fines on five cooperative banks due to regulatory compliance issues. These banks include Indapur Urban Co-operative Bank, Janakalyan Sahakari Bank, The Patan Urban Co-operative Bank, Pune Merchants Co-operative Bank and Pune Municipal Corporation Servant’s Co-operative Urban Bank.
Indapur Urban Co-operative Bank in Pune received a penalty of Rs 5 lakh for not adhering to RBI directives on inter-bank gross exposure limits, imposing fixed penal charges for savings account balance shortfall and not categorising certain accounts as NPAs.
Janakalyan Sahakari Bank in Mumbai faced a Rs 5 lakh penalty for not reporting credit information of eligible loan accounts to RBI's CRILC platform within the stipulated timeline.
The Patan Urban Co-operative Bank in Satara faced a Rs 2 lakh penalty for non-compliance with Depositor Education and Awareness Fund transfer regulations.
Pune Merchants Co-operative Bank was fined Rs 1 lakh for not conducting annual reviews of dormant accounts and Pune Municipal Corporation Servant’s Co-operative Urban Bank faced the same penalty for similar non-compliance issues.
RBI emphasised that these penalties were imposed under the Banking Regulation Act, 1949, and were related to regulatory compliance lapses, not assessing the validity of transactions or agreements between the banks and their customers.
