The Reserve Bank of India (RBI) on Thursday said that it has imposed a total penalty of Rs 6 lakh on The Catholic Co-operative Urban Bank Limited of Telangana, The Kottarakara Co-operative Urban Bank Limited of Kerala, and Jila Sahakari Kendriya Bank Maryadit, Mandsaur in Madhya Pradesh.

RBI has imposed a monetary penalty of Rs 3 lakh on The Catholic Co-operative Urban Bank Limited. A penalty of Rs 2.50 lakh was imposed on Jila Sahakari Kendriya Bank Maryadit, Mandsaur. The Central Bank has also levied a penalty of Rs 50,000 on The Kottarakara Co-operative Urban Bank Limited. The penalty has been imposed for the non-compliance of several RBI rules.

RBI Penalty: What The Central Bank Said?

The Catholic Co-operative Urban Bank Limited is penalised for non-compliance with certain directions issued by RBI. The bank non-complied with the ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’, ‘Management of advances-UCBs’ and ‘Loans and advances to directors, their relatives, and firms /concerns in which they are interested’ rules of the RBI. “A scrutiny of the bank was conducted by RBI in October 2023,” said RBI.

Jila Sahakari Kendriya Bank Maryadit, Mandsaur is penalised for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act). “This penalty has been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act,” said RBI in the circular.

Kottarakara Co-operative Urban Bank is penalised for the non-compliance with specific directions issued by RBI under Supervisory Action Framework. “This penalty has been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949,” said the central bank.