The Reserve Bank of India on Monday imposed monetary penalty on three co-operative banks for deficiencies in regulatory compliance. The central bank imposed Rs 50 lakh penalty on The Nasik Merchant's Co-operative Bank for non-compliance with the directions issued by RBI on ‘Placement of deposits with other banks’ and ‘Interest Rate on Deposits’.
This action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, RBI said.
In a separate development, RBI imposed a monetary penalty of Rs 37.50 lakh on The Maharashtra State Co-operative Bank, Mumbai for non-compliance with the directions issued by NABARD on ‘Frauds - Guidelines for Classification, Reporting and Monitoring’.
In a statement, the RBI said a penalty of Rs 37.50 lakh has been imposed on The Maharashtra State Co-operative Bank, Mumbai for non-compliance with the directions issued by Nabard on 'Frauds - Guidelines for Classification, Reporting and Monitoring'.
A penalty of Rs 2 lakh has been imposed on The National Central Cooperative Bank Limited, Bettiah for non-compliance with provisions of the Depositor Education and Awareness Fund and Know Your Customer (KYC) norms.
In each case, the RBI added, the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
