✨ Smart Article Summary
- Reserve Bank of India (RBI) has imposed a penalty of Rs22.60 lakh on four cooperative banks from Madhya Pradesh (MP) and one from Mumbai, Maharashtra for non-compliance with the directions issued by the banking regulator.
- The highest penalty of Rs15 lakh has been imposed on Maharashtra-based Bharat Cooperative Bank (Mumbai) Ltd.
- Other banks penalised by RBI are Indore Paraspar Sahakari Bank Maryadit, Raj Rajeshwari Mahila Nagrik Sahakari Bank Maryadit, Shri Vaibhav Lakshmi Mahila Nagrik Sahakari Bank Maryadit and Guna Nagarik Sahakari Bank Maryadit from Madhya Pradesh.
- Bharat Cooperative Bank has been penalised for non-compliance with the directions issued by RBI on income recognition, asset classification, provisioning and other related matters -urban cooperative banks (UCBs).
- RBI’s statutory inspection revealed that Bharat Cooperative Bank (Mumbai) had failed to classify the loan accounts of some borrowers as non-performing assets (NPA).
Reserve Bank of India (RBI) has imposed a penalty of Rs22.60 lakh on four cooperative banks from Madhya Pradesh (MP) and one from Mumbai, Maharashtra for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs15 lakh has been imposed on Maharashtra-based Bharat Cooperative Bank (Mumbai) Ltd.
Other banks penalised by RBI are Indore Paraspar Sahakari Bank Maryadit, Raj Rajeshwari Mahila Nagrik Sahakari Bank Maryadit, Shri Vaibhav Lakshmi Mahila Nagrik Sahakari Bank Maryadit and Guna Nagarik Sahakari Bank Maryadit from Madhya Pradesh.
Bharat Cooperative Bank has been penalised for non-compliance with the directions issued by RBI on income recognition, asset classification, provisioning and other related matters -urban cooperative banks (UCBs).
RBI’s statutory inspection revealed that Bharat Cooperative Bank (Mumbai) had failed to classify the loan accounts of some borrowers as non-performing assets (NPA).
RBI also penalised four cooperative banks from MP for failing to comply with its directives on priority sector lending (PSL) targets and classifications.
Indore Paraspar Sahakari Bank Maryadit was fined Rs4.50 lakh, Raj Rajeshwari Mahila Nagrik Sahakari Bank Maryadit Rs1.10 lakh, and both Guna Nagarik Sahakari Bank Maryadit and Shri Vaibhav Lakshmi Mahila Nagrik Sahakari Bank Maryadit Rs1 lakh each.
An RBI investigation revealed that these four banks did not deposit the necessary funds into the micro and small enterprises (MSE) MSE refinance fund maintained by the Small Industries Development Bank of India (SIDBI) to address the shortfall in meeting PSL targets for FY22–23. Despite receiving a cautionary letter from the RBI, the lenders failed to take corrective action within the prescribed timeframe.
RBI says its action against these five cooperative banks is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the banks with their customers.