RBI imposes Rs 5 lakh fine on two co-operative banks

MUMBAI: The Reserve Bank today imposed penalties of up to Rs 5 lakh on two cooperative sector lenders -- Surat Mercantile Co-operative Bank and Urban Co-operative Bank, Cuttack -- for violation of certain banking norms .

"The RBI has imposed a monetary penalty of Rs 5 lakh on The Surat Mercantile Co-operative Bank Ltd...for violation of RBI instructions on disposal of non-banking assets, donations and purchasing of cheques...," the apex bank said in a statement.

It further said that a penalty of Rs 1 lakh has been imposed on Urban Co-operative Bank Ltd, Cuttack for violation of instructions relating to opening of collection counters without prior approval RBI.

"After considering the facts of the case and the bank's reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty," it said.

Source: EconomicTimes