Mumbai, Oct 19 (IANS): The Reserve Bank of India (RBI) has slapped monetary penalties on five co-operative banks in Gujarat for violation norms which include giving loans to their own directors which is not allowed.

The RBI said it has imposed a monetary penalty of Rs 6.00 lakh on Surat National Co-operative Bank Ltd., Surat, Gujarat for contravention of directions issued by RBI on ‘Co-operative Banks - Interest Rate on Deposits’ and ‘Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’

RBI has imposed a fine of Rs 3.00 lakh on People’s Co-operative Bank Ltd., Dholka, Gujarat for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ and ‘Co-operative Banks - Interest Rate on Deposits’.

A penalty of Rs 2.00 lakh on Vadnagar Nagarik Sahakari Bank Ltd., Vadnagar, Gujarat for contravention of directions issued by RBI on ‘Loans and Advances to directors, relatives and firms/concerns in which they are interested.’

Another fine of Rs 2.00 lakh has been slapped on Mahila Co-operative Nagrik Bank Ltd., Bharuch, Gujarat) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Know Your Customer (KYC)’.

The RBI has also imposed a monetary penalty of Rs 1.00 lakh on The Chhapi Nagarik Sahakari Bank Ltd., Banaskantha, Gujarat for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’.

The RBI said that the action against these banks is based 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.