RBI fines 6 co-op and 3 sahakari banks

15 Nov 2022 , 09:14 AM

Nine entities, comprising six co-operative banks and three Sahakari banks, have been penalized to the tune of Rs11.60 lakh, the RBI stated, in separate releases.

Odisha’s Berhampur Cooperative Urban Bank received a fine of Rs3.10 lakh; Maharashtra’s Osmanabad Janata Sahakari Bank received a fine of Rs2.5 lakh; and Gujarat’s Santrampur Urban Co-operative Bank Ltd. received a fine of Rs2 lakh.

Jila Sahakari Kendriya Bank Maryadit, Ambikapur (Chhattisgarh), Jamshedpur Urban Cooperative Bank Ltd, Balaghat (Madhya Pradesh), and Renuka Nagarik Sahakari Bank Maryadit, Jamshedpur (Jharkhand), among others, have all received fines of Rs1 lakh apiece.

Kendrapara Urban Co-operative Bank Ltd. in Kendrapara, Odisha, and Krishna Mercantile Co-operative Bank Ltd. in Bhopal, Madhya Pradesh, received fines of Rs50,000 apiece.

According to a statement from the RBI, the Nawanagar Co-operative Bank Ltd. of Jamnagar, Gujarat, has been fined Rs25,000.

According to RBI, its actions are motivated by gaps in regulatory compliance and are not meant to judge the legality of any agreements or transactions made by the bank with its clients.

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