The Reserve Bank of India (RBI) has imposed monetary penalty on three co-operative banks of the country.
The RBI has imposed, by an order dated February 15, 2022, a monetary penalty of ₹2.00 lakh (Rupees two lakh only) on The Big Kancheepuram Co-operative Town Bank Limited (No.3) for non-adherence / violation of directions issued under Exposure Norms and Statutory / Other Restrictions – UCBs. This penalty has been imposed in the exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. This action was based on 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.
The RBI has imposed, by an order dated February 15, 2022, a monetary penalty of ₹2.00 lakh (Rupees Two Lakh only) on the Baramulla Central Co-operative Bank Limited, Jammu and Kashmir (the bank) for contravention of Section 6 and Section 9 read with Section 56 of the Banking Regulation Act, 1949 and violation of RBI Directions prohibiting the acceptance of fresh deposits. This penalty has been imposed in the exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. This action was based on 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.
The RBI has imposed, by an order dated February 17, 2022, a monetary penalty of ₹1 lakh (Rupees one lakh only) on Chennai Central Co-operative Bank Ltd., Chennai, Tamil Nadu for non-adherence / violation of certain directions issued by RBI contained in the Circular on ‘Income Recognition, Assets Classification, Provisioning and Other Related Matters dated June 22, 1996. This penalty has been imposed in the exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. This action was based on 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.
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