The Reserve Bank has imposed penalties on five cooperative banks in Gujarat due to various lapses in adherence to its regulations. Over the past month, these penalties range from Rs 50,000 to Rs 5 lakh for each bank. In an order dated December 13, 2023, the regulator levied a Rs 5 lakh penalty on Vadodara’s Shree Bharat Co-operative Bank for failing to comply with its directives regarding the placement of deposits with other banks by urban primary cooperative banks. Additionally, the bank violated norms related to interest rates on deposits as per the directions of 2016.
The monetary penalties imposed on these banks stem from regulatory compliance shortcomings and do not pass judgment on the validity of any transactions or agreements between the banks and their customers, clarified the central bank in separate statements released on Thursday.
In a different order dated December 7, 2023, the Sankheda Nagarik Sahakari Bank, located in Sankheda in the Chhotaudepur district of Gujarat, faced a Rs 5 lakh penalty for non-compliance with directives concerning loans and advances to directors, relatives, and firms/concerns in which they hold an interest. Additionally, the bank flouted norms regarding deposits with other banks by primary co-operative banks.
Another penalty, amounting to Rs 1.50 lakh, was imposed on the Bhuj Commercial Co-operative Bank situated in the Kachchh district of Gujarat. This penalty was attributed to the bank’s failure to comply with KYC directives and its inability to meet the specified interest rates on deposits.
In an order dated December 13, 2023, the Limdi Urban Cooperative Bank, located in Limdi in the Dahod district of Gujarat, incurred a penalty of Rs 50,000 for non-compliance with deposit rate regulations.
