Chhattisgarh Rajya Sahakari Bank Maryadit, Raipur:
RBI imposed a penalty of ₹25 lakh on this bank for non-compliance with certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’.
The penalty comes after the statutory inspection of the bank conducted by NABARD concerning the bank’s financial position as of March 31, 2020.
The Inspection Report pertaining thereto and examination of all related correspondence revealed, inter alia, that the bank had failed to put in place a system of periodic review of risk categorization of customers, RBI said.
The Goa State Co-operative Bank, Panaji:
The central bank levied a monetary penalty of ₹2.51 lakh on the bank for non-compliance with section 9 read with section 56 of the Banking Regulation Act, 1949 (the Act).
According to the statement, the bank failed to dispose of the non-banking asset within the statutory timeline from the date of its acquisition.
Garha Co-operative Bank Limited, Guna (M.P.):
The bank has levied a penalty of ₹1 lakh on the bank for contravention of/non-compliance with the directions issued by RBI to Urban Cooperative Banks on Income Recognition and Asset Classification (IRAC).
The penalty comes after an inspection report of the bank based on its financial position as of March 31, 2019, revealed, inter alia, contravention of/non-compliance with the directions issued by RBI to Urban Cooperative Banks on Income Recognition and Asset Classification (IRAC).
The Yavatmal Urban Co-operative Bank Limited, Yavatmal (Maharashtra):
RBI imposed a monetary penalty of ₹3.50 lakh on the bank for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Know Your Customer (KYC).
The penalty was levied after the inspection report of the bank based on its financial position as of March 31, 2020, revealed, inter alia, that the bank had (i) not carried out periodic updation of KYC of its customers and (ii) no system of periodic review of risk categorization of accounts, in contravention of/ non-compliance with the directions issued by RBI on KYC.
Jila Sahakari Kendriya Bank Maryadit, Chhindwara (M.P.):
RBI declared a monetary penalty of ₹1 lakh on the bank for non-compliance with the provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by the Reserve Bank of India (RBI) on Know Your Customer (KYC).
An inspection report on the bank revealed that the bank had (i) delayed submission of statutory/OSS returns to RBI and NABARD (ii) not carried out a periodic review of risk categorisation of its customers and (iii) not carried out periodic updation of KYC of its customers in contravention of/ non-compliance with the provisions of the Act on submission of returns & directions issued by RBI/NABARD and directions on KYC respectively.
Warud Urban Co-operative Bank Ltd., Warud (Maharashtra):
RBI levied a monetary penalty of ₹1 lakh on the bank for non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC).
The Risk Assessment Report of the bank based on its financial position as of March 31, 2021, revealed, inter alia, that the bank had (i) not complied with the prudential inter-bank counterparty limit and (ii) not put in place a robust software for effective identification and reporting of suspicious transactions in contravention of/non-compliance with the directions issued by RBI on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC).
Indapur Urban Cooperative Bank Ltd., Indapur, Maharashtra:
The bank imposed a penalty of ₹7 lakh on the bank for contravention of the directions issued by RBI on Exposure Norms and Statutory/Other Restrictions – UCBs.
The Inspection Report of the bank based on its financial position as on March 31, 2021, revealed that the bank had granted unsecured advances in breach of the aggregate ceiling for such advances, applicable to it.
The Mehsana Urban Co-operative Bank Ltd., Mehsana, Gujarat:
The central bank imposed a penalty of ₹40 lakh on the bank for non-compliance with certain provisions of the Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016.
The penalty comes after an inspection report revealed that the bank failed to pay interest on (i) term deposits that had matured on Sundays/holidays/non-business working days and were repaid on the next working day, for the intervening days(ii) balance amount lying in current accounts of deceased individual depositors/proprietorship concerns, from the date of their death to the date of repayment to their claimants, and (iii) term deposits which remained unclaimed after maturity, for the period, while making repayment of those deposits.
Spandana Sphoorty Financial:
The penalty was levied to the tune of ₹2.33 crore for non-compliance with certain provisions of the 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016".
RBI decided on the penalty after conducting an inspection which revealed that the company failed to adhere to the pricing of credit guidelines for Non-Banking Financial Company- Micro Finance Institutions.
