RBI imposes financial penalties on 9 cooperative banks

The Reserve Financial institution of India (RBI) on Monday knowledgeable that it has imposed financial penalties on 9 cooperative banks from six states for non-compliance with numerous provisions. The financial institution regulator has fined two banks every from Odisha, Madhya Pradesh, and Gujarat, and one financial institution every from Chhattisgarh, Maharashtra, and Jharkhand.

From Odisha, two banks which have been fined are Berhampur Cooperative City Financial institution and Kendrapara City Co-operative Financial institution. Berhampur Cooperative City Financial institution has been fined Rs 3.10 lakh whereas the penalty for Kendrapara financial institution is Rs 50,000.

The RBI mentioned that the Berhampur financial institution had didn’t adjust to its instructions on prudential inter-bank (gross) publicity norms and prudential inter-bank counter-party restrict, allot Distinctive Buyer Identification Codes (UCIC) to its particular person clients and submit the right certificates relating to switch to the Depositor Training and Consciousness Fund.

The RBI has imposed Rs 1 lakh positive on Jamshedpur City Cooperative Financial institution, Jharkhand. The central financial institution mentioned that the inspection report of the financial institution revealed a violation of particular instructions issued to the financial institution by RBI below SAF (Supervisory Motion Framework).

From Madhya Pradesh, two banks which have been fined are Jila Sahakari Kendriya Financial institution Maryadit and Krishna Mercantile Co-operative Financial institution Ltd (Bhopal). The RBI has imposed a penalty of Rs 1 lakh on Jila Sahakari Kendriya Financial institution whereas the Krishna Mercantile has been fined Rs 50,000.

Chhattisgarh’s Renuka Nagarik Sahakari Financial institution Maryadit has been slapped with a positive of Rs 1 lakh for not complying with the instructions on prudential inter-bank (Gross) publicity restrict, not finishing up a periodic evaluation of danger categorization of its clients, and never having a strong system to detect suspicious transactions.

From Gujarat, the RBI has slapped Rs 2 lakh penalty on Santrampur City Co-operative Financial institution and Rs 25,000 positive on Nawanagar Co-operative Financial institution Ltd. The central financial institution mentioned that Santrampur City Co-operative Financial institution had not maintained the minimal Money Reserve Ratio (CRR).

A penalty of Rs 2.5 lakh has been imposed on Maharashtra’s Osmanabad Janata Sahakari Financial institution Ltd. The RBI mentioned the financial institution in query had not carried out the evaluation of danger categorisation of accounts and the updation of KYC of its clients as per prescribed periodicity.

The central financial institution additionally mentioned that these actions have been primarily based on deficiencies in regulatory compliance and weren’t meant to pronounce upon the validity of any transaction or settlement entered into by the banks with their clients.