RBI imposes monetary penalties on three co-operative banks for non-compliance

These banks are Udgir-based Udgir Urban Co-operative Bank Limited, Solapur-based Lokmangal Co-operative Bank Limited and Mumbai-based Satara Sahakari Bank Limited.

RBI imposes monetary penalties on three co-operative banks for non-compliance
RBI imposes monetary penalties on three co-operative banks for non-compliance

The Reserve Bank of India (RBI) on Thursday (May 2) imposed the monetary penalty on three co-operative banks for non-compliance.

These banks are Udgir-based Udgir Urban Co-operative Bank Limited, Solapur-based Lokmangal Co-operative Bank Limited and Mumbai-based Satara Sahakari Bank Limited.

The central bank imposed Rs 5 lakh penalty on Lokmangal Co-operative Bank, Rs 2 lakh on The Satara Sahakari Bank, and Rs 1 lakh on The Udgir Urban Co-operative Bank, the release said.

Monetary penalty on Udgir Urban Co-operative Bank Limited was imposed for non-compliance with the directions issued by RBI on ‘Exposure Norms & Statutory/Other Restrictions – UCBs and ‘Board of Directors – UCBs’.

Monetary penalty on Lokmangal Co-operative Bank was imposed for non-compliance with the directions issued by RBI on Know Your Customers (KYC). The bank had not carried out the periodic review of the risk categorization of accounts and had not carried out periodic updation of KYC as per the risk categorisation of the customers.

Monetary penalty on Satara Sahakari Bank Limited was imposed for allowing the refund of share capital to its members, despite its last assessed CRAR being below 9% was sustained.

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