New Delhi, 10th January 2023: Five cooperative banks have been imposed a monetary penalty by the Reserve Bank of India (RBl) for breaking one or more of the bank’s rules or for failing to follow one of its many directives.

According to a release by the RBI, the monetary penalties imposed on the organisations range from Rs 50,000 to Rs 3 lakh.

The banks are Shree Mahayogi Lakshmamma Co-operative Bank Ltd., Kurnool, Andhra Pradesh; The Attur Town Co-operative Bank Ltd., Attur, Salem District, Tamil Nadu; Gondia District Central Co-operative Bank Limited, Gondia (Maharashtra); The Shirpur Peoples’ Co-operative Bank Ltd., Shirpur (Maharashtra); and Tirupati Urban Co-operative Bank Ltd., Nagpur (Maharashtra).

The central bank stated in its five standalone releases, “The action is based on inadequacies in regulatory compliance and is not meant to pronounce upon the legitimacy of any transaction or agreement entered into by the bank with its customers.”

According to the bank’s risk assessment report based on its financial position as of March 31, 2021, these banks have violated or were not in compliance with several RBI directives, including Income Recognition, Asset Classification, Provisioning, and Other Related Matters – UCBs, related to Board of Directors – UCBs, and Know Your Customer provisions.