Reserve Bank of India has levied monetary penalties on a number of co-operative banks that have failed to conform to regulatory guidelines. This penalty amounts to substantial value as a result of the failure of the banks to meet the required regulatory standards as the result of RBI’s inspection of the bank’s operations.
1. Shree Laxmi Mahila Sahakari Bank Ltd., Mehsana
Shree Laxmi Mahila Sahakari Bank has been penalized to ₹1.60 lakh by the RBI for not following some directions regarding the placement of deposits with other banks and credit information companies (CICs) and Know Your Customer (KYC) norms. The bank was found guilty in multiple lapses such as its failure to adhere to prudential inter-bank counterparty exposure limits and incomplete customer due diligence. The RBI’s action follows a statutory inspection for the financial year ending March 31, 2023.
2. Shri Janata Sahakari Bank Ltd., Halol
The RBI also imposed a fine of ₹2.00 lakh on Shri Janata Sahakari Bank, Gujarat for failure to adhere to guidelines on directors’ and related parties’ loans, as well as placement of deposits with other banks. The infractions, found during an inspection in March 2023 were loan sanction to director-related parties and breach of the inter-bank exposure limit.
3. The Thasra People’s Co-operative Bank Ltd., Thasra
On December 16, 2024, a ₹3.00 lakh fine was imposed on The Thasra People’s Co-operative Bank for irregularities in the sanctioning of director-related loans and the violation of the Loan to Value (LTV) ratio on gold loans. This penalty follows a statutory inspection and is part of RBI’s ongoing effort to enforce regulatory compliance in the co-operative banking sector.
4. The Chanasma Commercial Co-operative Bank Ltd., Chanasma
The RBI additionally imposed a penalty of ₹3.00 lakh against The Chanasma Commercial Co-operative Bank on account of failure to maintain KYC norms besides improper review on director’s loans. Besides, bank failed to have periodic review of risk categorization, which shows improper regulatory practices.
These penalties show that RBI will follow the strictest guidelines towards banking regulations and be very responsible in maintaining India’s financial system.
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Tomorrow 26th December is celebrated as Veer Bal Diwas!
As stated in Bhagavad Gita : (Bhagavad Gita 5.16)
ज्ञानेन तु तदज्ञानं येषां नाशितमात्मनः।
In knowledge, ignorance is destroyed; for those who have knowledge, ignorance is vanquished.
Rain alert
A rain alert has been issued for the districts of Maharashtra, with Pune included in the yellow alert, by the India Meteorological Department (IMD) between December 26 and 28. The districts under yellow alert are expected to receive isolated thunder and lightning activities due to light to moderate rainfall.
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