This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

The bank had sanctioned fresh loans and advances, in non-adherence to directions under SAF, which were (a) beyond the applicable single borrower exposure limit; and (b) not backed by collateral security of term deposits/NSCs/KVPs/insurance policies.

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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

RBI imposes monetary penalty on Swami Vivekanand Sahakari Bank Niyamit, Nidagundi, Karnataka

The Reserve Bank of India (RBI) has, by an order dated December 18, 2024, imposed a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on Swami Vivekanand Sahakari Bank Niyamit, Nidagundi, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had failed to:

• adhere to the prudential inter-bank (gross) and counter party exposure limits; and
• upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.

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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

RBI imposes monetary penalty on Sri Basaveshwara Pattana Sahakara Bank Niyamit, Sindgi, Karnataka

The Reserve Bank of India (RBI) has, by an order dated December 18, 2024, imposed a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on Sri Basaveshwara Pattana Sahakara Bank Niyamit, Sindgi, Karnataka (the bank) for non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

The bank did not adhere to directions under SAF when it increased its exposure to the sector where level of NPAs were high and declared dividend without prior permission of RBI.

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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

RBI imposes monetary penalty on Manjra Mahila Urban Co-operative Bank Limited, Bidar, Karnataka

The Reserve Bank of India (RBI) has, by an order dated December 18, 2024, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on Manjra Mahila Urban Co-operative Bank Limited, Bidar, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

The bank had failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.

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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

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The post Reserve Bank of India (RBI) imposes monetary penalty on these 4 Bank – Check Details first appeared on Rightsofemployees.com.

The Reserve Bank said on Friday that the fine has been imposed on the bank for non-compliance with the conditions related to the RBI license. Apart from this, special instructions have been given to stop transactions under the Liberalized Remittance Scheme (LRS) with immediate effect.

Also Read: LPG Price Cut: New rate of LPG cylinder has been implemented from today 1st June 2024

RBI issued two notices to the bank.

Two separate notices were issued to the bank, in which it was asked to explain the reasons. After the bank’s reply to the notices and its reply, RBI found that the allegations against SBM Bank (India) are true, for which monetary penalty needs to be imposed. The bank also made some transactions under the Liberalised Remittance Scheme, whereas RBI had instructed to stop such transactions with immediate effect.

What will happen to the customers’ money now?

However, RBI said that the fine is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by the bank with its customers.

The post RBI imposed a monetary penalty of ₹88.70 lakh on SBM Bank (India) Limited first appeared on Rightsofemployees.com.

How much fine was imposed on which bank?

A fine of Rs 5 lakh has been imposed on Indapur Co Operative Bank and Pune Bank. The central bank has taken this action due to ignoring the rules of deposit account and minimum balance maintenance. Mumbai-based Jankalyan Co-operative Bank Limited has neglected to follow the rules of credit information.

For this reason, RBI has also imposed a fine of Rs 5 lakh on this bank. Apart from this, a fine of Rs 2 lakh has been imposed on The Patan Urban Co-operative Bank of Satara for ignoring the RBI rules on Banking Regulation Act 1949. Action has been taken against Pune Merchants Co-operative Bank Limited for not maintaining adequate information about deposit accounts.

RBI has imposed a full fine of Rs 1 lakh on the bank. A penalty of Rs 1 lakh has been imposed on Pune Municipal Corporation Servants Cooperative Urban Bank for not sharing correct information about inoperative accounts.

RBI said this

While taking action against cooperative banks, RBI said that RBI has no intention of interfering in the functioning of banks. Action has been taken against all the banks due to ignoring the rules and it will not affect the customers. All these banks will continue to function normally.

License of this bank canceled

Recently, the Reserve Bank has canceled the license of Urban Cooperative Bank Limited located in Sitapur, Uttar Pradesh. RBI has completely banned the functioning of the bank from December 7. This action has been taken in view of the deteriorating financial condition of the bank.

According to the Central Bank, the bank had neither capital left nor any hope of business. In such a situation, keeping in mind the security of customers’ capital, the Reserve Bank has canceled the license of this bank. After the license of this bank is cancelled, up to Rs 5 lakh deposited in the account will be covered under insurance.

The post Reserve Bank has imposed monetary penalty on 5 cooperative banks for violation of rules first appeared on Rightsofemployees.com.