Reserve Bank of India imposes penalties on three cooperative banks

The Reserve Bank of India (RBI) on Monday imposed penalties totalling Rs 5 lakh on three cooperative banks for various non compliances.

A penalty of Rs 2 lakh has been imposed on The Yashwant Cooperative Bank Limited, Phaltan for contravention of non-compliance with directions issued by it on Income Recognition, Asset Classification, Provisioning and Other Related Matters UCBs, the RBI said in a statement.

In another statement, the central bank said a penalty of Rs 2 lakh has been imposed on Kokan Mercantile Co-operative Bank Ltd., Mumbai for similar non-compliance.

The RBI has also imposed a penalty of Rs 1 lakh on the Samata Cooperative Development Bank Limited, Kolkata, for contravention of directions issued by it on 'Exposure Norms & Statutory/Other Restrictions-UCBs', the RBI said in a separate filing.

In all the cases, the RBI said the penalities are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by these banks with their respective customers.