Mumbai, Oct 16 (IANS): The RBI on Monday announced that it has slapped fines on Gujarat Mercantile Co-operative Bank and Mumbai-based West End Housing Finance for violating norms.

Gujarat Mercantile Co-operative Bank was penalised as the bank had breached the prudential inter-bank gross exposure limit, breached the prudential inter-bank counterparty exposure limit, and not maintained the minimum Cash Reserve Ratio (CRR) for certain days, the RBI explained.

A monetary penalty of Rs 1.7 lakh was imposed West End Housing Finance as it failed to obtain prior written permission of NHB/RBI for change in its shareholding due to progressive increases over time, resulting in the transfer of shareholding beyond the permitted limit, the RBI said.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers,” the RBI said.

Smaller fines were also imposed by the RBI on three other-co-operative banks. These include Nagarik Sahakari Bank, The Sevalia Urban Co-operative Bank, Makarpura Industrial Estate Co-operative Bank.