RBI Penalizes Five Co-Operative Banks For Non-Compliance Of Norms

RBI Penalizes Five Co-Operative Banks For Non-Compliance Of Norms

The institutions were ordered to pay a fine from Rs.1 lakh to Rs.5 lakh

The Reserve Bank of India (RBI) has announced the imposition of monetary penalty on five co-operative banks for rule violations.

The banks are - Uttarakhand Grameen Bank, Nagar Sahkari Bank, Raj Laxmi Mahila Urban Co-operative Bank, Rohtak Central Co-operative Bank, and Parwanoo Urban Co-operative Bank.

The central bank imposed Rs.5 lakh each penalty on Uttarakhand Grameen Bank and Raj Laxmi Mahila Urban Co-operative Bank, Rs.4 lakh on Nagar Sahkari Bank, Rs.2 lakh on Rohtak Central Co-operative Bank and Rs.1 lakh on Parwanoo Urban Co-operative Bank.

The Uttarakhand Grameen Bank was penalized for transferring the eligible unclaimed amount to the Depositor Education and Awareness Fund with delay, whereas Nagar Sahkari Bank for not classifying certain loan accounts as non-performing in accordance with the IRAC norms.

Similarly, Raj Laxmi Mahila Urban Co-operative Bank was fined for non-compliance with RBI’s specific directions under SAF to reduce the single exposure limit for fresh loans and advances by 50 percent of the applicable regulatory limits.