RBI imposes monetary penalties on nine urban cooperative banks

Mumbai, November 14, 2022 

Reserve Bank of India (RBI) on Monday slapped penalties on nine urban cooperative banks for non-compliance with various provisions.

The bank regulator has fined two banks each from Odisha, Madhya Pradesh, and Gujarat, and one bank each from Chhattisgarh, Maharashtra, and Jharkhand.

Odisha-based banks are Kendrapara Urban Co-operative Bank & Berhampur Cooperative Urban Bank. Gujarat-based banks are Santrampur Urban Co-operative Bank and Nawanagar Co-operative Bank and Madhya Pradesh-based Krishna Mercantile Co-operative Bank and Jila Sahakari Kendriya Bank.

One each from Jharkhand - The Jamshedpur Urban Cooperative Bank Ltd; Chattisgarh - Renuka Nagarik Sahakari Bank, and Maharashtra - Osmanabad Janata Sahakari Bank.

The banking regulator imposed a monetary penalty of Rs 3.10 lakh on the Berhampur Cooperative Urban Bank for contravention of the directions on Exposure Norms and Statutory, Know Your Customer (KYC) Direction and Depositor Education and Awareness Fund.

RBI imposed a monetary penalty of Rs 1 lakh on Jamshedpur Urban Cooperative Bank as the bank failed to adhere to specific directions under the Supervisory Action Framework (SAF).

RBI imposed a monetary penalty of Rs 25,000 on The Nawanagar Co-operative Bank Ltd, Jamnagar for contravention of directions on ‘loans and advances’ to directors.

[The Business Standard]