New Delhi: The Reserve Bank of India (RBI) imposed penalties on three cooperative banks (co-operative banks) on Monday. RBI imposed a fine of Rs 23 lakh on three cooperative banks for violating various norms. RBI imposed a penalty of Rs 12 lakh on Mogavira Sahakari Bank Ltd., Rs 10 lakh on Indapur Urban Co-operative Bank and Rs 1 lakh on Baramati Sahakari Bank Ltd., Baramati.
RBI said that the inspection report of Mogavira Co-operative Bank revealed that the bank had not fully transferred the unclaimed deposits to the Depositor Education and Awareness (DEA) Fund nor conducted the annual review of dormant accounts. It was also observed that there was no periodic review of the categorisation of accounts and there were many customers with the same Unique Customer Identification Code (UCIC).
Bank did not adhere to aggregate limit on unsecured advances.
Regarding Indapur Urban Co-operative Bank, RBI said that its inspection report revealed that the bank did not comply with the aggregate limit of unsecured advances and there was no process of periodic review of risk categorisation of accounts. Also, there is no robust system in place to generate alerts when transactions were inconsistent. Regarding Baramati Sahakari Bank, RBI said that the bank exceeded the prudential inter-bank (single bank) exposure risk limit.
Penalty imposed for lack of compliance.
The RBI said the penalty has been imposed on account of deficiencies in regulatory compliance in each case and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.