8 co-operative banks are fined for failing to comply with regulatory standards, says RBI.
The Visakhapatnam Co-operative Bank, which received a penalty of Rs 55 lakh from the Reserve Bank, was one of eight cooperative banks that were punished for breaking regulatory standards, the Reserve Bank revealed on Monday.
Multiple statements about the fines were made public by the central bank.
The Ottapalam Co-operative Urban Bank Ltd, No.F. 1647, Ottapalam, Palakkad District, Kerala, the Bharat Heavy Electricals Employees’ Co-operative Bank, Kailasapuram, Tiruchirappalli, Tamil Nadu, and the Darussalam Co-operative Urban Bank, Hyderabad, Telangana, have all received fines of Rs. 10 lakh, Rs. 5 lakh, and Rs. 10 lakh, respectively.
According to a statement, the RBI penalised the Visakhapatnam Co-operative Bank in Visakhapatnam, Andhra Pradesh, Rs 55 lakh for violating regulations pertaining to “revenue recognition, asset classification, provisioning,” and funding for housing programmes
The RBI levied fines of Rs. 10 lakh each against the Nellore Co-operative Urban Bank Limited in Gandhi Nagar, Nellore District, Andhra Pradesh, and the Kakinada Co-operative Town Bank Ltd in Kakinada, East Godavari District, Andhra Pradesh.
The National Urban Co-operative Bank Limited in Pratapgarh, Uttar Pradesh, and The Kendrapara Urban Co-operative Bank in Kendrapara would also each be subject to fines of Rs. 1 lakh and Rs. 5 lakh, respectively.
The RBI stated that each fine was based on regulatory compliance violations and was not intended to call into doubt the validity of any transactions or agreements they had made with their clients.
(This story has not been edited by News Mania staff and is published from a syndicated feed.)
