RBI imposes monetary penalty on 5 co-operative banks for rule violation
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The Reserve Bank of India (RBI) on March 21 said it has imposed monetary penalty on five co-operative banks for rule violations.
These banks are Pragati Mahila Nagrik Sahakari Bank, Janata Co-operative Bank, Jila Sahakari Kendriya Bank, Karad Urban Co-operative Bank, and The Kalupur Commercial Co-operative Bank.
The central bank imposed Rs 26.60 lakh on The Kalupur Commercial Co-operative Bank, Rs 13.30 lakh on Karad Urban Co-operative Bank, Rs 5 lakh on Janata Co-operative Bank, Rs 1 lakh on Pragati Mahila Nagrik Sahakari Bank, and Rs 75,000 on Jila Sahakari Kendriya Bank, according to a press release from the central bank.
The Kalupur Commercial Co-operative Bank was penalised as the bank had not transferred eligible amounts to the Depositor Education and Awareness Fund within the prescribed period and renewed two advances to a company in which the relative of a director of the bank was interested, being a major shareholder in the company, release added.
Karad Urban Co-operative Bank was penalised for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, the RBI said.
Further, penalty on Janata Co-operative Bank was imposed for sanctioning gold loans beyond prescribed regulatory limit under bullet repayment scheme, and sanctioning loans to its nominal members beyond prescribed regulatory limit.
These banks are Pragati Mahila Nagrik Sahakari Bank, Janata Co-operative Bank, Jila Sahakari Kendriya Bank, Karad Urban Co-operative Bank, and The Kalupur Commercial Co-operative Bank.
The central bank imposed Rs 26.60 lakh on The Kalupur Commercial Co-operative Bank, Rs 13.30 lakh on Karad Urban Co-operative Bank, Rs 5 lakh on Janata Co-operative Bank, Rs 1 lakh on Pragati Mahila Nagrik Sahakari Bank, and Rs 75,000 on Jila Sahakari Kendriya Bank, according to a press release from the central bank.
The Kalupur Commercial Co-operative Bank was penalised as the bank had not transferred eligible amounts to the Depositor Education and Awareness Fund within the prescribed period and renewed two advances to a company in which the relative of a director of the bank was interested, being a major shareholder in the company, release added.
Karad Urban Co-operative Bank was penalised for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, the RBI said.
Further, penalty on Janata Co-operative Bank was imposed for sanctioning gold loans beyond prescribed regulatory limit under bullet repayment scheme, and sanctioning loans to its nominal members beyond prescribed regulatory limit.
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