RBI imposes monetary penalty on 3 cooperative banks in Gujarat

Mumbai: The Reserve Bank of India (RBI), often referred to as the bankers’ bank, announced on Monday that it has imposed monetary penalties on three cooperative banks in Gujarat for non-compliance with regulatory guidelines.

In the first case, as per an order dated December 13, 2024, the apex bank imposed a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on Tarapur Co-operative Urban Bank Ltd., Dist. Anand, Gujarat, for non-compliance with certain directions issued by the RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs).’ The fine was imposed as the bank had failed to adhere to the prudential inter-bank counterparty exposure limit.

In another case in Anand, the RBI, by an order dated December 13, 2024, imposed a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on The Bhadran People’s Co-operative Bank Ltd., Dist. Anand, Gujarat, for non-compliance with certain directions issued by the RBI on ‘Interest Rate on Deposits’ and ‘Know Your Customer (KYC).’ The bank had accepted interest-free deposits in accounts other than current accounts and failed to upload the KYC records of customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.

In the third case, the apex bank, by an order dated December 13, 2024, imposed a monetary penalty of ₹15.00 lakh (Rupees Fifteen Lakh only) on SBPP Co-operative Bank Limited, Killa Pardi (Dist. Valsad), for non-compliance with the directions issued by the RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs.’ The fine was imposed as the bank had failed to classify the loan accounts of certain borrowers as non-performing assets. DeshGujarat