RBI fines three cooperative banks

12 Jul 2022 , 09:07 AM

Maharashtra State Cooperative Bank, Mumbai has been fined Rs37.50 lakh by the RBI, according to a release, for failing to follow the directives given by Nabard on “Frauds – Guidelines for Classification, Reporting, and Monitoring.”

Nasik Merchant’s Co-operative Bank was fined Rs50 lakh, according to a separate statement, for breaking RBI guidelines regarding “Placing deposits with other banks” and “Interest Rate on Deposits.”

National Central Cooperative Bank Limited, Bettiah has been fined Rs2 lakh for failing to follow the guidelines of the Depositor Education and Awareness Fund and Know Your Customer (KYC) standards.

The RBI continued, that in every case, the fine is based on regulatory compliance shortcomings and is not meant to question the legality of any transaction or arrangement made by the banks with their clients.