RBI slaps monetary penalties on five co-op banks

RBI slaps monetary penalties on five co-op banks

The Reserve Bank of India on Thursday imposed monetary penalties on five cooperative banks – Shree Bharat Co-operative Bank, The Sankheda Nagarik Sahakari Bank, The Co-operative Urban Bank, The Bhuj Commercial Co-operative Bank and The Limdi Urban Co-operative Bank – for violating norms.

The RBI imposed a penalty of Rs 500,000 on Shree Bharat Co-operative Bank for breaching inter-bank gross exposure limit as well as inter-bank counterparty exposure limit and not paying interest on matured term deposits from the date of maturity till the date of their repayment at the applicable rate.

The Co-operative Urban Bank was fined Rs 150,000 due to failure in uploading credit information to credit information companies, breaching inter-bank gross exposure limit and inter-bank counterparty limit.

The Bhuj Commercial Co-operative Bank was fined Rs 150,000 for its failure to categorise its customers in low-, medium- or high-risk categories and accepting interest-free deposits accounts other than current accounts.

The RBI slapped a penalty of Rs 50,000 on Limdi Urban Co-operative Bank for not paying interest on matured term deposits from the date of maturity till the date of their repayment at the applicable rate.