RBI slaps monetary penalty on 5 Co-op Banks for breaking violation
RBI slaps monetary penalty on 5 Co-op Banks for breaking violation

Mumbai:  Five cooperative banks were fined money by the Reserve Bank of India (RBl) for breaking one or more of the bank's rules or for failing to follow one of its many directives.

The entities are Gondia District Central Co-operative Bank Limited, Gondia (Maharashtra), The Shirpur Peoples' Co-operative Bank Ltd., Shirpur (Maharashtra), Shree Mahayogi Lakshmamma Co-operative Bank Ltd., Kurnool (Andhra Pradesh), The Attur Town Co-operative Bank Ltd., Attur, Salem District, Tamil Nadu, and Tirupati Urban Co- (Maharashtra).

According to an RBI press statement, the fines levied against these Banks vary from Rs.50,000 to Rs.3 lakh. The RBI  said in five independent announcements that its "activity is based on inadequacies in regulatory compliance and is not meant to pronounce upon the legitimacy of any transaction or agreement entered into by the bank with its clients."

According to the risk assessment report of the bank, which was based on the bank's financial position as of March 31, 2021, these have violated or were not in compliance with a number of RBI directives, including Know Your Customer and Income Recognition, Asset Classification, Provisioning, and Other Related Matters--UCBs-- related to Board of Directors.

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