Penalty Imposed by RBI On New India Co-Operative Bank, Jalgaon People’s Co-Operative Bank

By BW CFO World Online Bureau

RBI imposed penalties on New India Co-operative Bank and Jalgaon People’s Co-operative Bank worth Rs 25 lakh and Rs 20 Lakh respectively for non-compliance of the norms.

Penalties were imposed by the Reserve Bank of India (RBI) on Mumbai-based New India Co-operative Bank and on Jalgaon-based The Jalgaon People’s Co-operative Bank. The penalties were worth Rs 25 lakh and Rs 20 Lakh respectively.

New India Co-operative Bank was held for non-compliance of RBI rules under the ‘Frauds in Urban Co-operative Banks (UCBs): Changes in monitoring and reporting mechanism’ and Jalgaon People’s Co-operative on charges of “Placement of Deposits with other banks by primary Urban Co-operative Banks(UCBs).

Permitted Inspections were conducted by the central bank for the financial position of the banks as on March 31, 2019, and the inspection revealed non-compliance with the norms.

In the beginning the central bank issued notices to the banks but upon hearing the bank’s reply, the apex bank decided to impose monetary penalties.