~Samriddhi Singh Mahar
On Thursday, RBI fined five co-operative banks for various regulatory non-compliance reasons.
Out of these, 3 banks were fined for sanctioning loans involving the bank’s directors or their relatives. Some failed to transfer unclaimed funds to the Depositor Education and Awareness Fund while others faced penalties for KYC-related lapses, such as failing to update or upload customer records.
The Rajula Nagrik Sahakari Bank Ltd.:
Fined: Rs 1.25 lakh
- Sanctioned loans involving directors’ relatives.
- Failed to classify dormant accounts.
The Karjan Nagarik Sahakari Bank Ltd.:
Fined: Rs. 2.10 lakhMultiple failures, including transferring unclaimed funds, maintaining Cash Reserve Ratio, submitting borrower credit information, adhering to inter-bank exposure limits, and KYC updating.
The Amod Nagrik Co-operative Bank Ltd.:
Fined: 1 lakh
- Sanctioned loans involving directors’ relatives.
- Failed to upload KYC records.
The Sundargarh District Central Co-operative Bank Ltd.:
Fined: Rs 3 lakh
- Sanctioned loans to directors.
- Failed to transfer unclaimed funds.
- Did not follow customer due diligence.
Vijay Commercial Co-op Bank:
Fined: Rs 1 lakh
Failed to review risk categorisation periodically.
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