The Reserve Bank of India (RBI) has levied monetary penalties on three co-operative banks totaling Rs. 63.5 lakhs for regulatory compliance deficiencies. Additionally, The Nasik Merchant’s Co-operative Bank Ltd., Nashik, received a penalty of ₹48.30 lakh (Rupees Forty-eight lakh thirty thousand only) on November 2, 2023, for non-compliance with RBI directives related to ‘Frauds in UCBs: Changes in Monitoring and Reporting mechanism’ and ‘Maintenance of Deposit Accounts.’
Additionally, The Mehsana Urban Cooperative Bank Ltd. incurred a penalty of ₹15 lakh for failing to adhere to RBI directives on ‘Interest Rate on Deposits,’ according to an order dated November 3, 2023, under the authority of Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The Pudukkottai Co-operative Town Bank Ltd. faced a penalty of Rs. 25,000 for non-compliance with RBI directives regarding ‘Board of Directors – UCBs.’
After reviewing each bank’s response to the notice and considering oral submissions during the personal hearing, the RBI concluded that the charges of non-compliance were substantiated, justifying the imposition of monetary penalties.
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