What regulatory actions did the RBI take against co-operative banks for compliance deficiencies

The RBI has imposed monetary penalties on 5 co-operative banks for deficiencies in regulatory compliance.
The Reserve Bank of India (RBI) has indeed taken regulatory actions against co-operative banks for compliance deficiencies. It has imposed monetary penalties on five such banks, which are as follows:
  • Penalty on the Bicholim Urban Co-operative Bank Ltd: The RBI imposed a penalty of Rs. 5 lakh for non-compliance with directions relating to the management of loans and advances.
  • Penalty on the Tura Urban Co-operative Bank Ltd: A penalty of Rs. 2 lakh was imposed on this bank for deficiencies in credit management and asset classification.
  • Penalty on the Cooperative Urban Bank Ltd, Dehradun: This bank received a penalty of Rs. 2 lakh for non-compliance with directions on the management of statutory liquidity ratio (SLR) investments.
  • Penalty on the Kasaragod District Co-operative Bank Ltd: The RBI imposed a penalty of Rs. 2 lakh on this bank for non-compliance with directions regarding the prohibition of loans and advances to directors and their relatives.
  • Penalty on the Urban Co-operative Bank Ltd, Bikaner: A penalty of Rs. 1 lakh was imposed on this bank for non-compliance with directions relating to the prohibition of loans and advances to directors and their relatives.
These penal actions underline the RBI's commitment to ensuring that co-operative banks adhere to regulatory directives and maintain compliance standards.
Answered a year ago
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