In a significant move to enforce regulatory compliance, the Reserve Bank of India (RBI) has imposed hefty fines on five cooperative banks across India.
The banks facing these monetary penalties are The Patliputra Central Cooperative Bank Limited, Patan Nagarik Sahakari Bank Limited, The Mandal Nagarik Sahakari Bank Limited, The Balasore Bhadrak Central Co-operative Bank Limited, and The Dhrangadhra Peoples Co-operative Bank Limited.
Details of the Penalties Imposed:
- The Patliputra Central Cooperative Bank Limited, Bihar: Faced with a fine of ₹1.50 lakh for non-compliance with regulatory norms.
- Patan Nagarik Sahakari Bank Limited, Gujarat: Also penalized with a monetary fine of ₹1.50 lakh.
- The Mandal Nagarik Sahakari Bank Limited, Gujarat: Incurred a similar penalty of ₹1.50 lakh.
- The Balasore Bhadrak Central Co-operative Bank Limited, Balasore: A comparatively lower fine of ₹50,000 was imposed.
- The Dhrangadhra Peoples Co-operative Bank Limited: Faced a penalty of ₹1 lakh.
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and are not intended to question the validity of any transactions or agreements made by these institutions with their customers.
Additional Penalties on Major Banks:
In a related development, the Reserve Bank of India also imposed fines on Bank of America, N.A, and HDFC Bank Limited. Each bank was penalized ₹10,000 for violating certain norms.
The fine on Bank of America, N.A, was due to non-compliance with the reporting requirements under FEMA 1999’s Liberalized Remittance Scheme. HDFC Bank faced penalties for violating instructions related to accepting deposits from non-residents.
These actions by the RBI highlight its commitment to maintaining strict regulatory compliance in the banking sector, ensuring the stability and integrity of India’s financial system.
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