The RBI on Monday levied penalties of Rs 23 lakh on three cooperative banks, comprising Mogaveera Co-operative Bank Limited, Mumbai, for violating various norms. A fine of Rs 12 lakh has been levied on Mogaveera Co-operative Bank Limited, Rs 10 lakh on Indapur Urban Cooperative Bank, and Rs 1 lakh on The Baramati Sahakari Bank Limited, Baramati.
Concerning Mogaveera Co-operative Bank, the RBI said the scrutiny report of the bank, based on its financial position as on March 31, 2019, disclosed that it had not fully transferred not claimed deposits to Depositor Education and Awareness (DEA) Fund and had not performed annual review of inoperative accounts. Investigation also discovered the lender had no system of routine review of risk categorisation of accounts.
On Indapur Urban Cooperative Bank, the RBI stated a scrutiny report of the bank, based on its financial condition as on March 31, 2019, disclosed that it had not observed the combined ceiling on unsecured advances, and did not have exercised for periodical assessment of risk categorisation of accounts. It also did not have a strong system in place to provoke alerts whenever transactions were uncertain with the risk categorisation of clients. Review report of Baramati Sahakari Bank disclosed the bank had outnumbered prudential inter-bank (single bank) exposure limits.
In every case, the RBI added that fine was assigned due to inadequacies in regulatory acquiescence, and is not intentional to pronounce upon the legality of any transaction or agreement entered into by the bank with its clients.