Wednesday, March 05, 2025 | 07:09 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

RBI penalises two Co-op banks

Image

BS Reporter Mumbai/ Ahmedabad

The Reserve Bank of India (RBI) has penalised two Gujarat-based cooperative banks for violation of guidelines. Mehsana Urban Co-operative Bank Ltd and the Jamnagar Peoples Co-operative Bank Ltd have been imposed penalty of upto Rs 5 lakh for violations ranging from conduct of non-banking business to non-reporting of cash transactions.

In two separate statements issued by the RBI, the apex banking regulator said, "RBI.. imposed a monetary penalty of Rs 1 lakh on the Jamnagar Peoples Co-operative Bank Ltd, Jamnagar. The penalty was imposed for violation of the Reserve Bank instructions in respect of reporting of cash transactions above Rs 10.00 lakh to FIU-IND, New Delhi."

 

RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering facts of the case, the bank’s reply and also personal submissions in the matter, the regulator concluded that the violation was substantiated and warranted imposition of penalty, the statement said.

In the another instance, the RBI imposed a penalty of Rs 5 lakh on the Mehsana Urban Co-operative Bank Ltd, Mehsana (Gujarat). The apex bank added that the penalty was imposed for violation of RBI instructions on membership of co-operative societies, conduct of non-banking business and using the word 'Bank' in the name of another institution.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 06 2011 | 12:23 AM IST

Explore News