The Reserve Bank of India imposed a monetary penalty of Rs 3.75 lakh on two cooperative banks i.e. Bavla Nagarik Sahakari Bank and Ron Taluka Primary Teachers Cooperative Bank on Monday.
RBI imposed a monetary penalty of Rs 3.00 lakh on the Bavla Nagarik Sahakari Bank Ltd., Dist. Ahmedabad, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are Interested’ read with ‘Loans and Advances to directors etc. – directors as surety/guarantors – Clarification’ and ‘Master Direction – Know Your Customer (KYC) Direction, 2016’.
A monetary penalty of Rs 75,000 has been imposed on the Ron Taluka Primary Teachers Co-operative Bank Ltd., Ron, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Frauds monitoring and reporting mechanism’ and ‘Policy and Practice regarding Nominal Membership’.
This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
