Tag: inspection report

RBI imposes Rs 23 lakh fine on 3 co-op banks, BFSI News, ET BFSI

Banking & Finance

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The RBI on Monday imposed penalties of Rs 23 lakh on three cooperative banks, including Mogaveera Co-operative Bank Limited, Mumbai, for contravention of various norms. A penalty of Rs 12 lakh has been imposed on Mogaveera Co-operative Bank Limited, Rs 10 lakh on Indapur Urban Cooperative Bank, and Rs 1 lakh on The Baramati Sahakari Bank Limited, Baramati.

Regarding Mogaveera Co-operative Bank, the RBI said the inspection report of the bank, based on its financial position as on March 31, 2019, revealed that it had not fully transferred unclaimed deposits to Depositor Education and Awareness (DEA) Fund and had not conducted annual review of inoperative accounts.

Inspection also found the lender had no system of periodic review of risk categorisation of accounts.

On Indapur Urban Cooperative Bank, the RBI said inspection report of the bank, based on its financial position as on March 31, 2019, revealed that it had not adhered to the aggregate ceiling on unsecured advances, and did not have process for periodical review of risk categorisation of accounts.

It also did not have a robust system in place to generate alerts whenever transactions were inconsistent with the risk categorisation of customers.

Inspection report of Baramati Sahakari Bank revealed the bank had exceeded prudential inter-bank (single bank) exposure limit.

In each case, the RBI added that penalty was imposed due to deficiencies in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. N



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RBI imposes Rs 40 lakh penalty on Himachal Pradesh State Cooperative Bank, BFSI News, ET BFSI

Banking & Finance

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Mumbai, Apr 27 () The RBI has imposed a penalty of Rs 40 lakh on Himachal Pradesh State Cooperative Bank, Shimla, for non-compliance with certain regulatory directions issued by NABARD. The penalty has been imposed for non-compliance with regulatory directions issued by NABARD contained in ‘Review of Frauds – Guidelines on Monitoring and Reporting System’, the Reserve Bank of India said on Tuesday.

Giving details, it said the statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence regarding reporting of frauds, revealed, inter alia, non-compliance of the directions.

A notice was issued to the Himachal Pradesh State Co-operative Bank. After considering the bank’s reply to the notice and oral submissions made in the personal hearing, the RBI said it came to the conclusion that the charge was substantiated and warranted imposition of monetary penalty.

The RBI, however, added penalty has been imposed on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. NKD MR MR



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