RBI Imposes Heavy Penalties on 3 Cooperative Banks for Regulatory Non-compliance
Moneylife Digital Team 12 July 2022
The Reserve Bank of India (RBI) on Monday said it has imposed penalty on three cooperative banks, including Maharashtra-based The Nasik Merchant's Co-operative Bank, for deficiencies in regulatory compliance. In a statement, RBI said a penalty of Rs37.50 lakh has been imposed on The Maharashtra State Co-operative Bank, Mumbai for non-compliance with the directions issued by NABARD on 'Frauds—Guidelines for Classification, Reporting and Monitoring'. 
 
In another release, the banking regulator said a Rs50 lakh fine has been slapped on The Nasik Merchant's Co-operative Bank for contravention of directions issued by RBI on 'Placement of deposits with other banks' and 'Interest Rate on Deposits'. 
 
A penalty of Rs2 lakh has been imposed on The National Central Cooperative Bank Limited, Bettiah for non-compliance with provisions of the Depositor Education and Awareness Fund and know-your-customer (KYC) norms. In each case, RBI added, the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
Comments
VN KULKARNI
2 months ago
Height of this is that ,this penalty is for not sending depositors money to RBI.But what about the loan amount waived without any responsibility.?
No penalty ,no one is responsible. YE AISAHI HOTA HAI.
barokhoka1956
3 months ago
It will be interesting to know from which Fund and/or Accounts the defaulting banks pay the penalty. In the present case, it's a Co-operative Bank but in several earlier occasions the RBI imposed penalties on SBI, PNB, ICICI, Axis Banks etc. for various deviations. These Banks, in fact none of the Banks are individual and they are organized and run by their Officers/Staff Members. And the Banks pay the Penalties for the faults committed by them and that too from Public Fund. Is there any system with the Banks to recover the cost of such Penalties from the defaulting Banking Staff/Officers or penalize them? How this expenditure are shown in the Books of the Banks?
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