RBI fines 8 cooperative banks

30 Aug 2022 , 08:08 AM

The Reserve Bank announced on Monday that it had fined eight cooperative banks for failing to comply with regulatory requirements, including The Visakhapatnam Co-operative Bank, which received a penalty of Rs55 lakh. The central bank released numerous comments informing the public about the fines.

The Bharat Heavy Electricals Employees’ Co-operative Bank, Kailasapuram, Tiruchirappalli, Tamil Nadu; The Ottapalam Co-operative Urban Bank Ltd, No.F. 1647, Ottapalam, Palakkad District, Kerala; and The Darussalam Co-operative Urban Bank, Hyderabad, Telangana have each been fined Rs10 lakh; Rs5 lakh; and Rs10 lakh, respectively.

The Visakhapatnam Co-operative Bank, Visakhapatnam, Andhra Pradesh, was fined Rs55 lakh by the RBI, according to a statement, for breaking rules relating to “revenue recognition, asset categorization, provisioning,” and financing for housing programs.

The Nellore Co-operative Urban Bank Limited in Gandhi Nagar, Nellore District, Andhra Pradesh, and Kakinada Co-operative Town Bank Ltd in Kakinada, East Godavari District, Andhra Pradesh, have both received fines from the RBI of Rs10 lakh apiece.

In addition, The Kendrapara Urban Cooperative Bank in Kendrapara and The National Urban Co-operative Bank Limited in Pratapgarh, Uttar Pradesh, each faces fines of Rs1 lakh and Rs5 lakh, respectively.

The RBI claimed that in each instance, fines were based on violations of regulatory compliance and were not meant to question the legality of any transactions or agreements they had made with their clients.

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