The Reserve Bank of India (RBI) has imposed monetary penalties on three cooperative banks for deficiencies in regulatory compliance. These banks are:

Saraswat Co-operative Bank Limited, Mumbai: A penalty of ₹23 lakh was imposed for contravention of various provisions of the Banking Regulation Act, 1949 (BR Act), and RBI directions related to ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested.’

Bassein Catholic Co-operative Bank Ltd, Vasai, Maharashtra: A penalty of ₹25 lakh was imposed for contravention of provisions of the BR Act and RBI directions on ‘Exposure Norms and Statutory/Other Restrictions.’ The bank had granted multiple unsecured loans to one of its directors/his proprietorship firm.

Rajkot Nagarik Sahakari Bank Ltd., Rajkot: A penalty of ₹13 lakh was imposed for non-compliance with RBI directions on ‘Interest Rate on Deposits.’ The bank failed to pay eligible interest on term deposits that matured on a Sunday/holiday or non-business working day, and paid on the succeeding working days. Additionally, it failed to pay eligible interest on matured unpaid term deposits for the period they remained unclaimed with the bank.

These actions by the RBI were based on identified deficiencies in regulatory compliance and were not intended to determine the validity of any transactions or agreements entered into by the banks with their customers.

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