Five cooperative banks in Gujarat have been fined by the Reserve Bank for a variety of violations of its policies during the course of the last month. The fines range from Rs 50,000 to Rs 5 lakh for each of the banks.
In separate statements on Thursday, the regulator said that it fined the Vadodara-based Shree Bharat Co-operative Bank Rs 5 lakh for violating its 2016 interest rate on deposit guidelines and for not following its instructions regarding urban primary cooperative banks placing deposits with other banks. The order dated December 13, 2023.
The central bank stated that the financial penalties imposed on these five banks are based on their failure to comply with regulations and are not meant to be interpreted as a judgement on the legality of any agreements or transactions the banks have with their clients.
In a separate order dated December 7, 2023, it fined the Sankheda Nagarik Sahakari Bank, which is located in Sankheda in the district of Chhotaudepur in Gujarat, Rs 5 lakh for failing to follow regulations regarding loans and advances to directors, relatives, and businesses or concerns in which they have an interest, as well as for breaking rules regarding primary co-op banks’ deposits with other banks.
The Bhuj Commercial Co-operative Bank, located in Gujarat’s Kachchh district, was fined Rs 1.50 lakh in a judgement dated December 8, 2023, for failing to follow the KYC guidelines and to pay the required interest rates on deposits.
The RBI fined the Limdi Urban Cooperative Bank, which is located in Limdi in the Gujarati district of Dahod, Rs 50,000 on December 13 for failing to comply with the deposit rates.
In a separate ruling dated December 7, 2023, the RBI fined the Parlakhemundi, Gujarat-based Co-operative Urban Bank Rs 1.50 lakh for failing to abide by the rules regarding credit information company membership, exposure standards, and statutory limitations on UCBs.
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