Five more cooperative banks fined over compliance issues

6 Sep 2022 , 08:24 AM

The Karnataka State Co-operative Apex Bank, Bengaluru, was one of five cooperative banks that the Reserve Bank fined for noncompliance with regulatory requirements, receiving a sum of Rs25 lakh. According to a statement released by the RBI, The Karnataka State Co-operative Apex Bank Ltd. has been penalized for failing to follow instructions on “Housing Finance”.

According to a separate announcement, Thane Bharat Sahakari Bank Limited, Thane, has been fined Rs15 lakh for failing to follow RBI guidelines on “Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorized Electronic Banking Transactions.”

According to the central bank, Rani Laxmibai Urban Co-operative Bank, Jhansi, has been fined Rs5 lakh for failing to follow specified instructions from the RBI under the Supervisory Action Framework (SAF). The RBI also fined The Nicholson Co-operative Town Bank (No. 8), Thanjavur District, Tamil Nadu, Rs2 lakh for failing to follow instructions provided under the Exposure Norms and Statutory/Other Restrictions UCBs.

For breaking the rules pertaining to the Depositor Education and Awareness Fund, The Urban Co-operative Bank, Rourkela has been fined Rs10,000. The RBI also stated that the fines are based on regulatory compliance shortcomings and are not meant to judge the legality of any transaction or arrangement made by the banks with their clients.

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