New Delhi: Apex Bank of the country, The Reserve Bank of India has imposed monetary penalties for not meeting the necessary criteria for regulatory compliance on four banks. Out of the 4 banks, one bank is from Bihar and the remaining ones are from Maharashtra. These banks are Tapindu Urban Co-operative Bank Limited, Islampur Urban Co-operative Bank Limited, Mahabaleshwar Urban Co-operative Bank Limited and Mangal Co-operative Bank Limited.
Patna’s Bank at fault
The Reserve Bank has imposed a monetary penalty of Rs 1,00,000 on Tapindu Urban Co-operative Bank Ltd. (Patna) for not being able to meet the apex bank’s directions on ‘ Exposure Norms and Statutory/ Other Restrictions – UCBs’.
As per the information, the bank has failed to comply with the RBI’s rules on prudential inter-bank exposure norms at the aggregate level.
Besides that, Islampur Urban Co-operative Bank Ltd. (Maharashtra) has been imposed with a fine of Rs 2 lakh for non-compliance with certain provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India KYC (Know Your Customers) Guidelines, 2016 and ‘Mainternance of Deposit Accounts- UCBs’.
The bank failed to transfer the eligible amount to the Depositor Education and Awareness Fund (DEAF) by not conducting an annual review of inoperative accounts. In addition, the bank also had not reviewed the risk categorisation of its customer base.
Other than this, the Mahabaleshwar Urban Cooperative Bank Limited (Maharashtra) was also fined Rs 2 lakh. Furthermore, RBI imposed a monetary penalty of Rs 1 lakh on Mangal Sahakari Bank Ltd (Mumbai) for non-compliance with the directions supplied by RBI on ‘Maintenance of Deposit Accounts’ and ‘KYC’.
