RBI penalises 2 cooperative banks for deficiencies in regulatory compliance

The Reserve Bank of India (RBI) on Wednesday said it has imposed penalties on two cooperative banks for deficiencies in certain regulatory compliance. A penalty of Rs 5 lakh has been imposed on The Swasakthi Mercantile Cooperative Urban Bank, Vijayawada, for contravention of/ non-compliance with certain provisions of the directions issued under a 2015 circular on 'Board of Directors- UCBs'.

In another statement, the RBI said a penalty of Rs 40,000 has been imposed on Shikshak Sahakari Bank, Nagpur, for non-compliance with regulatory directions contained in the directive on 'Membership of Credit Information Companies (CICs)' and the provisions of Credit Information Companies Rules, 2006.

In both cases, however, the central bank said the action on the lenders was based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers.