RBI Imposes Penalty On This Bank In Rourkela; Know Why

Bhubaneswar: The Reserve Bank of India (RBI) has imposed penalties on five cooperative banks, including Urban Co-operative Bank in Odisha’s Steel City Rourkela, for deficiencies in regulatory compliance.

A fine of Rs 10,000 has been imposed on the bank for contravention of norms related to Depositor Education and Awareness Fund, the RBI said in a statement.

While a penalty of Rs 25 lakh has been slapped on Karnataka State Co-operative Apex Bank, Bengaluru, for non-compliance with directions on ‘Housing Finance’, Thane Bharat Sahakari Bank Limited, Thane, has been fined Rs 15 lakh for contravention of the directions issued by RBI on ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’.

Similarly, a fine of Rs 5 lakh has been imposed on Rani Laxmibai Urban Co-operative Bank, Jhansi, for having failed to adhere to specific directions issued to it by RBI under Supervisory Action Framework (SAF) and Rs 2 lakh penalty on Nicholson Co-operative Town Bank (No.8), Thanjavur, Tamil Nadu for violation of directions issued under Exposure Norms and Statutory/Other Restrictions UCBs, the statement added.

The central bank, however, clarified that the penalties are based on deficiencies in regulatory compliance & are not intended to pronounce upon the validity of any transaction entered into by the banks with their customers.

(With PTI inputs)