Money & Banking

RBI imposes monetary penalty on 4 co-operative banks

Our Bureau Mumbai | Updated on June 29, 2021

Saraswat Co-operative Bank, SVC Co-operative Bank, Andhra Pradesh Mahesh Co-operative Urban Bank, and Ahmedabad Mercantile Co-operative Bank are the four banks

The Reserve Bank of India (RBI) has imposed monetary penalty on Andhra Pradesh Mahesh Co-operative Urban Bank, (₹112.50 lakh); Ahmedabad Mercantile Co-operative Bank (₹62.50 lakh), SVC Co-operative Bank (₹37.50 lakh) and Saraswat Co-operative Bank (₹25 lakh).

RBI, in a statement, said it has imposed monetary penalty on Hyderbad-based Andhra Pradesh Mahesh Co-operative Urban Bank (Hyderabad) for non-compliance with its directions on ‘Interest Rate on Deposits’and ‘Know Your Customer’.

The central bank said it has imposed monetary penalty on The Ahmedabad Mercantile Co-operative Bank for non-compliance with its directions on ‘Interest Rate on Deposits.’

RBI said it has imposed monetary penalty on Mumbai-based SVC Co-operative Bank for non-compliance with its directions on ‘Interest Rate on Deposits’ and ‘Frauds Monitoring and Reporting Mechanism’.

In the case of Saraswat Co-operative Bank, the central bank said, it has imposed monetary penalty for non-compliance with its directions on ‘Interest Rate on Deposits’and ‘Maintenance of Deposit Accounts’.

In all the four aforementioned cases, RBI said: “This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.”

Saraswat Co-operative Bank, SVC Co-operative Bank , Andhra Pradesh Mahesh Co-operative Urban Bank, and Ahmedabad Mercantile Co-operative Bank are among the top 10 urban co-operative banks in the country.

Published on June 29, 2021

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