The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs50.35 lakh on Janalaxmi Co-operative Bank from Nashik for non-compliance with its directions.
The banking regulator said that the Janalaxmi Co-operative Bank did not follow directions issued on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks' and 'Membership of Credit Information Companies (CICs)'.
A statutory inspection conducted by RBI with reference to the bank's financial position as of 31 March 2019, and the inspection report and examination of all related correspondence revealed non-compliance with the directions, RBI said in a statement.
Separately, the RBI has also imposed a penalty of Rs3 lakh on the Noida Commercial Co-operative Bank from Ghaziabad.
In a separate statement, the banking regulator said the inspection report of the cooperative bank based on its financial position as of 31 March 2019 revealed that it failed to adhere to the provisions related to director-related loans and opening of new place of business.
However, RBI said the penalities are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered by the two lenders with their customers.