RBI penalises 3 co-operative banks

The Reserve Bank said it has imposed penalty on three cooperatives banks.

In a statement, the RBI said a penalty of Rs. 37.50 lakh has been imposed on The Maharashtra State Co-operative Bank, Mumbai for non-compliance with the directions issued by Nabard on ‘Frauds – Guidelines for Classification, Reporting and Monitoring’.

In another release, it said a Rs 50 lakh fine has been slapped on The Nasik Merchant’s Co-operative Bank for contravention of directions issued by the RBI on ‘Placement of deposits with other banks’ and ‘Interest Rate on Deposits’.

A penalty of Rs 2 lakh has been imposed on The National Central Cooperative Bank Limited, Bettiah for non-compliance with provisions of the Depositor Education and Awareness Fund and Know Your Customer (KYC) norms.

In each case, the RBI added, the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.