The Reserve Bank of India (RBI) on August 26 imposed monetary penalties on three co-operative banks for violation of rules.
These banks are Seyad Shariat Finance Limited, Tamil Nadu, Muslim Co-operative Bank, Maharashtra, and Jijamata Mahila Sahakari Bank Maharashtra, the RBI said in separate press statements on Thursday.
The RBI imposed a penalty of Rs 3 lakh on Jijamata bank, Rs 2 lakhs on Muslim Co-operative Bank, and Rs 5 lakh on Seyad Shariat Bank, the release said. The regulator conducted audits of these banks and the penalties were based on the findings.
In the case of Seyad Bank and Muslim Co-operative Bank, the rule violations pertain to Know Your Customer norms while in the case of Jijamata Co-operative Bank, the violations are related to exposure norms.
The RBI has been cracking down on cooperative banks for violation of rules and poor governance standards. The regulator has canceled the licenses of at least three cooperative banks in the last two years.
Source: Money Control