RBI slaps Rs 10 lakh fine on 4 cooperative banks for violating norms

The RBI on Thursday said it has imposed a total penalty of Rs 10 lakh on four cooperative banks for deficiencies in regulatory compliance.

A penalty of Rs 5 lakh has been imposed on Jowai Co-operative Urban Bank Limited for contravention of the directions issued by RBI on 'Exposure Norms and Statutory/Other Restrictions-UCBs', the central bank said.

Giving details, RBI said the inspection/scrutiny report of the bank based on its financial position as on March 31, 2018 revealed, inter alia, contravention of/ non-compliance with the norms.

Based on the same, a notice was issued to the bank asking it "to show cause as to why penalty should not be imposed" for non-compliance with the directions.

After considering the bank's reply, oral submissions made during the personal hearing and additional submission made after the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance were substantiated and warranted imposition of monetary penalty, it said.

The RBI has also imposed penalty of Rs 2 lakh each on The Krishnanagar City Co-operative Bank Limited and The Tura Urban Cooperative Bank Limited for similar contraventions.

In a separate statement, RBI said a penalty of Rs 1 lakh has been slapped on The Co-operative Urban Bank Ltd for contravention of the directions issued by it on 'Exposure Norms and Statutory/Other Restrictions-UCBs'.

The RBI added that the actions on the banks are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel