The Reserve Bank has chosen to impose monetary penalties on four cooperative banks due to their failure in meeting regulatory compliance standards. The banks involved are Ordnance Equipment Factory Prarambhik Sahkari Bank Ltd, Vishwanathrao Patil Murgud Sahakari Bank Ltd, The Shibpur Co-operative Bank Ltd, and The Chiplun Urban Co-operative Bank Ltd.
Vishwanathrao Patil Murgud Sahakari Bank Ltd, located in Murgud, Maharashtra, is facing a fine of ₹1.00 lakh due to its failure in complying with the directives issued by the RBI pertaining to ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. The bank granted loans to nominal members for purposes not sanctioned by the RBI’s directives.
In another instance, The Shibpur Co-operative Bank Ltd, operating in West Bengal, is being subjected to a monetary penalty of ₹10,000. The reason behind this penalty is the bank’s non-adherence to the RBI’s guidelines concerning ‘Exposure Norms and Statutory/Other Restrictions – UCBs’. The bank did not comply with the RBI’s instructions regarding prudential inter-bank (gross) exposure limits and prudential inter-bank counter-party limits.
Ordnance Equipment Factory Prarambhik Sahkari Bank Ltd, situated in Kanpur, has been ordered to pay a monetary fine of ₹3.00 lakh. This penalty is a result of the bank’s inability to adhere to specific directives given by the RBI as part of the Supervisory Action Framework (SAF). In contravention of these directives, the bank offered deposit interest rates higher than those approved by the State Bank of India.
The Reserve Bank’s actions are a direct consequence of identified shortcomings in these banks’ adherence to regulatory compliance standards. These actions are not intended to determine the legality or validity of any transactions or agreements between the banks and their customers.
Lastly, The Chiplun Urban Co-operative Bank Ltd, located in Chiplun, Maharashtra, is being penalised with a monetary fine of ₹2.00 lakh. This penalty has been imposed due to the bank’s failure to comply with RBI directives related to ‘Management of Advances’ and ‘Maintenance of Deposit Accounts’. The bank provided gold loans under the Bullet Repayment Scheme that exceeded the regulatory limit. Additionally, the bank levied penal charges at a fixed rate for non-maintenance of minimum balances in saving bank accounts, disregarding the stipulated requirement for charges to be proportional to the actual shortfall.
