Daijiworld Media Network - Mumbai

Mumbai, Feb 14: The Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks for various regulatory lapses, while also placing restrictions on New India Co-op Bank.

The penalized banks include Sulaimani Cooperative Bank, Mahanagarpalika Shikshan Vibhag Sahakari Bank, Salem Urban Cooperative Bank, Ramanathapuram Cooperative Urban Bank, and Tiruppur Cooperative Urban Bank.

Sulaimani Cooperative Bank Ltd., Vadodara, Gujarat, faced a penalty of Rs 2 lac for non-compliance with RBI guidelines on deposit placement and interest rates. Mumbai Mahanagarpalika Shikshan Vibhag Sahakari Bank Ltd. was fined Rs 50,000 for violating KYC norms.

The Salem Urban Cooperative Bank Ltd., Tamil Nadu, received a Rs 1.75 lac penalty for breaches related to loans and advances to directors, exposure norms, and KYC guidelines. Ramanathapuram Cooperative Urban Bank Ltd was fined Rs 50,000 for KYC non-compliance, while Tiruppur Cooperative Urban Bank Ltd was penalized Rs 1.50 lac for violations of exposure norms and KYC directives.

The RBI levied these penalties under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.