The Reserve Bank of India (RBI) has imposed fines totaling Rs 6.25 lakh on several cooperative banks in Gujarat for various regulatory non-compliances. The penalties were levied following the examination of reports and personal hearing submissions, which revealed breaches in rules governing deposit placements and loans.
Shri Mahila Sewa Sahakari Bank Ltd in Ahmedabad faced the stiffest penalty of Rs 2.5 lakh for failing to comply with norms related to deposit placement with other banks by primary urban cooperative banks (UCBs) and for not paying interest over non-business working days on matured term deposits.
Porbandar Vibhagiya Nagarik Sahakari Bank was fined Rs 2 lakh, while Sarvodaya Nagarik Sahakari Bank in Himmatnagar and Vejalpur Nagarik Sahakari Bank in Panchmahal were fined Rs 1 lakh and Rs 25,000 respectively. These fines were for similar non-compliances concerning deposit placements and exceeding exposure limits.
Additionally, Khambhat Nagarik Sahakari Bank in Khambhat received a fine of Rs 50,000 due to loan sanctions that involved a director's relative as a guarantor, which is against RBI guidelines.
The central bank clarified that the imposition of fines is aimed at enforcing regulatory adherence and does not question the validity of the cooperative banks' agreements with their customers.
In a separate action, the RBI extended the operational directions for Thodupuzha Urban Co-operative Bank in Kerala until February 24, under review conditions, to ensure the bank addresses its regulatory issues.
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