RBI imposes monetary penalty on Ulhasnagar Based Konark Urban Cooperative Bank Ltd And 3 More Banks
Ulhasnagar : Neetu Vishwakarma
The Reserve Bank of India (RBI) has imposed monetary penalties on four co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: Jijamata Mahila Sahakari Bank Ltd, Shri Laxmikrupa Urban Co-operative Bank Ltd, The Konark Urban Cooperative Bank Ltd and The Chembur Nagarik Sahakari Bank Ltd.
The RBI imposed a monetary penalty of ₹1.00 lakh on The Konark Urban Cooperative Bank Ltd., Ulhasnagar for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’. The Konark Urban Cooperative Bank Ltd had imposed fixed penal charges for shortfall in maintenance of minimum balance in savings bank accounts instead of imposing penal charges proportionate to the extent of shortfall, the RBI said.
The apex bank imposed a monetary penalty of ₹1.00 lakh on Shri Laxmikrupa Urban Co-operative Bank Limited, Pune for non-compliance with RBI directions on ‘Reserve Bank of India – Know Your Customer (KYC) Direction, 2016’. The banking regulator said Shri Laxmikrupa Urban Co-operative Bank had not conducted periodic review of risk categorisation of its customers.
The Reserve Bank imposed a monetary penalty of ₹4.00 lakh on Jijamata Mahila Sahakari Bank Limited, Pune for non-compliance with RBI directions on ‘Reserve Bank of India – Know Your Customer (KYC) Direction, 2016’ and ‘Frauds in UCBs: Changes in Monitoring and Reporting Mechanism’. The RBI said the Jijamata Mahila Sahakari Bank had not conducted periodic review of risk categorisation of accounts; and had not reported a fraud to RBI within the stipulated timeline.
The Reserve Bank imposed a monetary penalty of ₹1.00 lakh on The Chembur Nagarik Sahakari Bank Ltd., Mumbai for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’. The Chembur Nagarik Sahakari Bank had imposed fixed penal charges for shortfall in maintenance of minimum balance in savings bank accounts, instead of imposing penal charges proportionate to the extent of shortfall and had also failed to notify its customers that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable, the banking regulator added.
The RBI further said the monetary penalties on the cooperative banks were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with its customers.
