RBI imposes Rs 23 lakh fine on 3 cooperative banks

RBI imposes Rs 23 lakh fine on 3 cooperative banks

PTIUpdated: Monday, June 21, 2021, 08:53 PM IST
article-image
RBI imposes Rs 23 lakh fine on 3 cooperative banks | file

The RBI on Monday imposed penalties of Rs 23 lakh on three cooperative banks, including Mogaveera Co-operative Bank Limited, Mumbai, for contravention of various norms.

A penalty of Rs 12 lakh has been imposed on Mogaveera Co-operative Bank Limited, Rs 10 lakh on Indapur Urban Cooperative Bank, and Rs 1 lakh on The Baramati Sahakari Bank Limited, Baramati.

Regarding Mogaveera Co-operative Bank, the RBI said the inspection report of the bank, based on its financial position as on March 31, 2019, revealed that it had not fully transferred unclaimed deposits to Depositor Education and Awareness (DEA) Fund and had not conducted annual review of inoperative accounts.

Inspection also found the lender had no system of periodic review of risk categorisation of accounts.

On Indapur Urban Cooperative Bank, the RBI said inspection report of the bank, based on its financial position as on March 31, 2019, revealed that it had not adhered to the aggregate ceiling on unsecured advances, and did not have process for periodical review of risk categorisation of accounts.

It also did not have a robust system in place to generate alerts whenever transactions were inconsistent with the risk categorisation of customers.

Inspection report of Baramati Sahakari Bank revealed the bank had exceeded prudential inter-bank (single bank) exposure limit.

In each case, the RBI added that penalty was imposed due to deficiencies in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

RECENT STORIES

WPI Inflation Slips Into Negative Zone In June, Food & Fuel Prices Lead Deflation

WPI Inflation Slips Into Negative Zone In June, Food & Fuel Prices Lead Deflation

Will PM-Kisan 20th Installment Release On July 18?, Know What Farmers Should Expect

Will PM-Kisan 20th Installment Release On July 18?, Know What Farmers Should Expect

Bitcoin Crosses $1,21,000 For First Time As Institutional Buying, ETF Optimism Drive Rally

Bitcoin Crosses $1,21,000 For First Time As Institutional Buying, ETF Optimism Drive Rally

Average Income Tax Refund Time Drops From 93 Days In 2013 To Just 17 Days In 2024: CBDT Data

Average Income Tax Refund Time Drops From 93 Days In 2013 To Just 17 Days In 2024: CBDT Data

US Considers Interim Trade Deal With India, Tariffs May Drop Below 20%

US Considers Interim Trade Deal With India, Tariffs May Drop Below 20%