The Reserve Bank of India (RBI) has imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance

The Reserve Bank of India (RBI) has imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance. The co-operative banks that faced the central bank's action are Navsarjan Industrial Co-operative Bank Ltd, Mehsana Jilla Panchayat Karmachari Co-operative Bank Ltd, Halol Urban Co-operative Bank Ltd, Stambhadri Co-operative Urban Bank Ltd and Subramanianagar Co-operative Urban Bank Ltd.

The Reserve Bank imposed a monetary penalty of ₹7 lakh on the Navsarjan Industrial Co-operative Bank Ltd at Ankleshwar in Bharuch district of Gujarat for non-compliance with the directions issued by the RBI on ‘placement of deposits with other banks by primary (urban) co-operative banks, Reserve Bank of India (KYC) Directions, 2016 and contravention of certain norms of the Banking Regulation Act, 1949’.

The apex bank said the Navsarjan Industrial Co-operative Bank had breached inter-bank gross and counterparty exposure limits and had not carried out a review of risk categorisation of accounts as per prescribed periodicity. The bank had not transferred the eligible amount to the Depositor Education and Awareness Fund, the RBI said.

The apex bank imposed a monetary penalty of ₹3 lakh on the Mehsana Jilla Panchayat Karmachari Co-operative Bank in Gujarat for non-compliance with the directions issued by the RBI on ‘placement of deposits with other banks by primary (urban) co-operative banks' and contravention of certain provisions of the Banking Regulation Act, 1949.