Mumbai: The Reserve Bank of India (RBI) has taken an action against several cooperative banks in Gujarat, imposing monetary penalties for non-compliance with its directives. The central bank has fined four banks namely The Sarvodaya Sahakari Bank Limited in Modasa, Dhanera Mercantile Co-operative Bank Ltd. in Dhanera, The Janata Co-operative Bank Ltd. in Godhra, and Maninagar Co-operative Bank Ltd. in Ahmedabad.

The RBI issued orders, specifying the penalties imposed on these banks. The penalties are as follows:

1. The Sarvodaya Sahakari Bank Limited, Modasa, Gujarat

~ Monetary Penalty: ₹6.00 Lakh (Rupees Six Lakh only)

~ The bank had (i) sanctioned credit facilities to relative of one of its directors and also wherein relatives of the directors stood as guarantor (ii) breached inter-bank gross exposure limit, (iii) breached inter-bank counterparty exposure limit, and (iv) not paid interest on matured fixed deposits from the date of maturity till the date of its repayment at the rate applicable to saving deposits or the contracted rate of interest, whichever is lower.

2. Dhanera Mercantile Co-operative Bank Ltd., Dhanera, Gujarat

~ Monetary Penalty: ₹6.50 Lakh (Rupees Six Lakh Fifty Thousand only)

~ The bank had (i) sanctioned credit facilities to its directors / their relatives and also wherein their relative stood as guarantor, (ii) breached prudential inter-bank (gross) exposure limit, and (iii) breached prudential inter-bank counter-party exposure limit.

3. The Janata Co-operative Bank Ltd., Godhra, Dist. Panchmahal, Gujarat

~ Monetary Penalty: ₹3.50 Lakh (Rupees Three Lakh Fifty Thousand only)

~ The bank had (i) made donation to a trust where one of the directors of the bank was a trustee, and (ii) sanctioned loans, wherein relatives of the bank’s directors stood as guarantor.

4. Maninagar Co-operative Bank Ltd., Ahmedabad, Gujarat

~ Monetary Penalty: ₹1.00 Lakh (Rupees One Lakh only)

~ The bank had (i) breached prudential inter-bank counterparty exposure limit, and (ii) not paid interest on overdue term deposits from the date of maturity till the date of repayment at the rate applicable to savings deposits or at the contracted rate of interest, whichever is lower.

These actions stem from the results of statutory inspections conducted by RBI, which assessed the financial positions of these banks as of March 31, 2022. These penalties have been enforced under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949. DeshGujarat

 

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