RBI imposed Monetary Penalty on 8 co-operative banks

The Reserve Bank of India (RBI) has imposed 2 Monetary Penalty on 8 co-operative banks for breaching certain provisions related to ‘income recognition, asset classification, provisioning’ and finance for housing schemes.

Highlights

• Rs 55 lakh penalty on the Visakhapatnam Co-operative Bank Visakhapatnam, Andhra Pradesh for lack in regulatory compliances. The highest penalty among all banks was imposed on The Visakhapatnam Co-operative Bank.
• Rs 10 lakh penalty on Bharat Heavy Electricals Employees’ Co-operative Bank, Kailasapuram, Tiruchirapalli, Tamil Nadu; The Darussalam Co-operative Urban Bank, Hyderabad, Telangana; the Nellore Co-operative Urban Bank Limited, Nellore, Andhra Pradesh and Kakinada Co-operative Town Bank Ltd, East Godavari, Andhra Pradesh.
• Rs 5 lakh on the Ottapalam Co-operative Urban Bank Ltd, Palakkad, Kerala and the National Urban Co-operative Bank Limited, Pratapgarh, Uttar Pradesh.
• Rs 1 lakh penalty imposed on The Kendrapara Urban Cooperative Bank, Kendrapara ,Odisha.