RBI Slaps Rs8 Lakh Penalty on 2 Cooperative Banks for Regulatory Violations
Moneylife Digital Team 19 September 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs8 lakh on two cooperative banks for failing to comply with the directions issued by the banking regulator. The highest penalty of Rs5 lakh has been imposed on Urban Cooperative Bank Ltd from Jammu and Kashmir (J&K).
 
Lucknow University Primary Cooperative Bank Ltd from Uttar Pradesh was fined Rs3 lakh.
 
Urban Cooperative Bank and Lucknow University Primary Cooperative Bank have been penalised for non-compliance with directions issued by RBI on investments by primary urban cooperative banks (UCBs).
 
RBI statutory inspection found that these banks failed to adhere to the prudential inter-bank gross and counterparty exposure limits.
 
"After considering the reply and oral submissions of both the banks during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty," the central bank says.
 
In both cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to be pronounced on the validity of any transaction or agreement they entered into with their customer.
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