RBI imposes monetary penalty on 8 cooperative banks

Mumbai [India], January 24 : The Reserve Bank of India (RBI) on Monday imposed penalties on eight cooperative banks due to deficiencies in regulatory compliance.
The cooperative banks that have been penalised include Rajkot Peoples Co-operative Bank Ltd, Rajkot (Gujarat); Vasai Janata Sahakari Bank Ltd, Palghar; Mogaveera Co-operative Bank Ltd., Mumbai; The Varachha Co-operative Bank Ltd., Surat (Gujarat); The Associate Co-operative Bank Ltd., Surat (Gujarat); Bhadradri Co-operative Urban Bank Ltd., Khammam, Telangana; Jodhpur Nagrik Sahakari Bank Ltd., Jodhpur and The Jammu Central Co-operative Bank Ltd., Jammu.
The Reserve Bank of India issued separate press statements regarding the imposition of monetary penalties on each of these cooperative banks.
A statement related to the imposition of monetary penalty on Rajkot Peoples Co-operative Bank Ltd., Rajkot (Gujarat) said: "The Reserve Bank of India (RBI) has, by an order dated January 18, 2022, imposed a monetary penalty of Rs 1.00 lakh (Rupees one lakh only) on "Rajkot Peoples Co-operative Bank Ltd.", Rajkot (Gujarat) (the bank) for contravention of directions issued by RBI on 'Loans and advances to directors, relatives and firms /concerns in which they are interested'.
"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the central bank said.
Mogaveera Co-operative Bank Ltd, Mumbai has been penalised Rs 2 lakh for non-compliance with certain directions related to KYC norms. Vasai Janata Sahakari Bank, Palghar has also been imposed a penalty of Rs 2 lakh.
Other penalties are also either Rs 1 lakh or Rs 2 lakh.