The Reserve Bank of India (RBI) has imposed a monetary penalty of rupees 6 lakhs on 4 Co-operative Banks of Gujarat and West Bengal for non-Compliance with regulatory directions. The co-operative banks are: Santragachi Co-operative Bank Ltd., West Bengal, Vidyasagar Central Co-operative Bank Limited, Midnapore, West Bengal, Karnavati Co-operative Bank Ltd., Ahmedabad, Gujarat and Gandevi People’s Co-operative Bank Ltd., Navsari, Gujarat.
The Santragachi Co-operative Bank Ltd., West Bengal
Penalty: ₹1.00 Lakh
Date: September 14, 2023
Violation: Non-compliance with RBI directions on ‘Exposure Norms and Statutory/Other Restrictions – UCBs.’
Vidyasagar Central Co-operative Bank Limited, Midnapore, West Bengal
Penalty: ₹1.50 Lakh
Date: September 14, 2023
Violation: Non-compliance with RBI directions related to “Housing Finance.”
Karnavati Co-operative Bank Ltd., Ahmedabad, Gujarat
Penalty: ₹1.50 Lakh
Date: August 31, 2023
Violation: Non-compliance with RBI directions on ‘Loans and advances to directors, relatives, and firms/concerns in which they are interested,’ along with ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism.’
Gandevi People’s Co-operative Bank Ltd., Navsari, Gujarat
Penalty: ₹2.00 Lakh
Date: September 01, 2023
Violation: Non-compliance with RBI directions regarding ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism.’
These penalties were imposed under the provisions of the Banking Regulation Act, 1949, with the RBI finding substantiated charges of non-compliance with its directives after considering bank responses and oral submissions during personal hearings.
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