New Delhi, Sep 25
The Reserve Bank of India (RBI) on Thursday imposed monetary penalties on multiple cooperative banks across the country for failing to comply with its directions on various regulatory norms.
The South Canara District Central Co-operative Bank Limited in Karnataka was penalised Rs 1.5 lakh for breaching prudential exposure limits on housing finance and for holding shares in another cooperative society, which is prohibited under the Banking Regulation Act.
Two banks received smaller penalties of Rs 50,000 each. The Guntur District Co-operative Central Bank Limited in Andhra Pradesh was fined for failing to upload KYC records of customers to the Central KYC Records Registry (CKYCR) within the prescribed time, while The Tamil Nadu Circle Postal Co-operative Bank Limited in Tamil Nadu was penalised for offering deposit interest rates higher than those permitted under the Supervisory Action Framework.
The central bank also noted that the penalties are without prejudice to any further action it may initiate against the erring banks.