RBI fines eight cooperative banks, including Mehsana Urban, Rs 40 lakh

The RBI on Monday said it has imposed penalties on eight cooperative banks, including a fine of Rs 40 lakh on the Mehsana Urban CoMehsana Urban Co-operative Bank in Gujarat, for non-compliance with various norms.

In 2016, Mehsana Urban was imposed on non-compliance with certain provisions of the Co-operative Interest Rate on Deposits Directions.

In another statement, it said that a sum of Rs 7 lakh was imposed on Indapur Urban Cooperative Bank, Indapur Maharashtra for contravention of certain provisions related to exposure norms.

Three Warud Urban Co-operative Bank, Warud Maharashtra Jila Sahakari Kendriya Bank Maryadit, Chhindwara Madhya Pradesh and the Yavatmal Urban Co-operative Bank, Yavatmal Maharashtra have been penalised for non-compliance with Know Your Customer KYC norms.

A 25 lakh fine has been imposed on Chhattisgarh Rajya Sahakari Bank MaryaditBank Maryadit, Raipur Chhattisgarh for non-compliance with certain KYC provisions.

The penalties have been imposed on the Goa State Co-operative Bank, Panaji, Guna Madhya Pradesh and Garha Limited.

The penalties are not intended to make a decision on the validity of any transaction or agreement entered into by the banks with their customers, but are intended to be based on deficiencies in regulatory compliance.