India’s RBI punishes five co-operative banks for rule violations, imposes fine

India’scentral bank onMonday (Apr 29) imposed a monetary penalty on five co-operative banks for multiple violations.The Reserve Bank of India (RBI) saidall five banks werefoundin non-compliance of the directions issued by the National Bank for Agriculture and Rural Development (NABARD) on‘Frauds - Guidelines for Classification, Reporting and Monitoring’.The five banks that have been penalised are as follows:

• The Central Co-operative Bank
• The Vaish Co-operative Adarsh Bank
• Indira Mahila Sahakari Bank
• The Chitradurga District Co-operative Central Bank
• Samarth Sahakari Bank

The RBIina pressreleasesaid a penalty of INR 1 lakh ($1200) was imposed on The Vaish Co-operative Adarsh Bank, whereas the Central Co-operative Bankwas finedINR 2 lakh ($2400). The RBI has asked Indira Mahila Sahakari Bank to pay INR 75,000 ($900) as a fine whereas both the Chitradurga District Co-operative Central Bank and Samarth Sahakari Bank have been fined worth INR 50,000 each ($600).

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“RBI in an inspection found out that the charge of delay in reporting of frauds by The Central Co-operative Bank,”the release added.

The release added that the Vaish Co-operative Adarsh Bank was also penalised for non-compliance with the directions issued by RBI on‘Know Your Customer (KYC) Directions, 2016’.

RBI cancels Acemoney India NBFC licence

Meanwhile, the RBI on Monday cancelled the certificate of registration of Acemoney India Ltd, a non-banking financial company (NBFC) based in the northwestern part of the national capital, citing irregular lending practices.

The company"shall not transact the business of a Non-Banking Financial Institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act, 1934",the banking regulator said.

(With inputs from agencies)