RBI Penalizes Five Co-operative Banks with Rs 60.3 Lakh Fine

The Reserve Bank of India (RBI) has imposed penalties totaling Rs 60.3 lakh on five co-operative banks for contravening various regulatory norms. These penalties primarily stem from non-compliance with specific directives issued by the RBI, encompassing bans on loans and advances to directors and their relatives, restrictions on opening savings accounts for certain entities, and maintenance of deposit accounts.

Penalty Breakdown

• Rajkot Nagarik Sahakari Bank: Fined Rs 43.30 lakh for violations related to loans to directors and their relatives, prohibition on certain savings account openings, and deposit account maintenance.
• The Kangra Co-operative Bank (New Delhi): Penalized Rs 5 lakh.
• Rajdhani Nagar Sahkari Bank (Lucknow): Also fined Rs 5 lakh.
• Zila Sahakari Bank, Garhwal (Kotdwar, Uttarakhand): Subject to a Rs 5 lakh penalty.
• District Co-operative Bank (Dehradun): Imposed with a penalty of Rs 2.

RBI’s Stance

The RBI clarified that these penalties are based on deficiencies in regulatory compliance and are not intended to pass judgment on the validity of any transactions or agreements made by these banks with their respective customers.