RBI imposes Rs 12 lakh fine on six co-operative banks, three sahakari banks

Reserve Bank on Monday imposed a collective fine of nearly Rs 12 lakh on several co-operative and other banks for violating various banking norms. Penalties amounting to Rs 11.60 lakh have been imposed on nine entities, including six co-operative banks and three Sahakari banks, RBI said in separate releases.

Berhampur Cooperative Urban Bank (Odisha) has been fined Rs 3.10 lakh; Osmanabad Janata Sahakari Bank, Osmanabad (Maharashtra) Rs 2.5 lakh; and Santrampur Urban Co-operative Bank Ltd, Santrampur in Mahisagar district (Gujarat) Rs 2 lakh penalty.

Among others, Jila Sahakari Kendriya Bank Maryadit, Balaghat (Madhya Pradesh); Jamshedpur Urban Cooperative Bank Ltd, Jamshedpur, Jharkhand; and Renuka Nagarik Sahakari Bank Maryadit, Ambikapur (Chhattisgarh) have been fined Rs 1 lakh each.

Krishna Mercantile Co-operative Bank Ltd, Bhopal (Madhya Pradesh) and Kendrapara Urban Co-operative Bank Ltd, Kendrapara, Odisha were fined Rs 50,000 each.

The Nawanagar Co-operative Bank Ltd, Jamnagar (Gujarat) is penalised with Rs 25,000, as per RBI release.

RBI said its actions are based on deficiencies 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.