Bihar State Cooperative Bank fined Rs 60.20 lakh by RBI for multiple deficiencies

Mumbai: The Reserve Bank on Monday imposed a penalty of Rs 60.20 lakh on The Bihar State Cooperative Bank Limited, Patna, for a slew of shortcomings and violations. The RBI said that a statutory inspection of the Patna-based bank by NABARD after FY20 had revealed that it failed to put in robust software for identifying and reporting suspicious transactions and submit statutory returns within prescribed timelines.

It also failed to submit off-site surveillance system returns within prescribed timelines, submit data to all the four credit information companies, and also constitute a customer service committee of the board, among other things.

RBI announced monetary penalty of Rs 6 lakh on Jowai Cooperative Urban Bank Ltd

A notice was issued to the bank, and the fine has been imposed after going through its reply, as per an official statement from the central bank. The RBI also announced a monetary penalty of Rs 6 lakh on Jowai Cooperative Urban Bank Limited, Meghalaya for deficiencies in regulatory compliance.

Bank was found to have breached inter-bank (gross) exposure limits

The bank was found to have breached inter-bank (gross) exposure limits and failed to carry out periodic review of risk categorisation of its accounts in an inspection report for FY22, the RBI said, following which a notice was issued and the monetary penalty was decided after going through the reply.

Telangana State Cooperative Apex Bank Ltd has been penalised Rs 2 lakh

Similarly, Telangana State Cooperative Apex Bank Limited, Hyderabad has been penalised Rs 2 lakh for failing to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period in FY20, the RBI said.

Central bank also imposed a monetary penalty of Rs 10 lakh

The central bank also imposed a monetary penalty of Rs 10 lakh on the Cooperative Bank of Rajkot Ltd, Rajkot (Gujarat) for contravention of directions on 'Reporting of unauthorised transactions by customers to banks', 'Names as Appearing in the Certificate of Registration and the Licence - Use of - Primary (Urban) Cooperative Banks (UCBs)' and 'Frauds in UCBs: Changes in Monitoring and Reporting mechanism, as per the statement. It also said that Chennai-based Equitas Holdings and the city-based Mukand Global Finance have surrendered their Non-banking finance company licenses granted to them earlier.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)