RBI imposes penalty on Eight Cooperative banks

The Reserve Bank said it has imposed penalty on eight cooperative banks for violation of directions of RBI.

A penalty of Rs 10 lakh has been imposed on Bharat Heavy Electricals Employees’ Co-operative Bank, Kailasapuram, Tiruchirappalli, Tamil Nadu; Rs 5 lakh on The Ottapalam Co-operative Urban Bank Ltd, No.F. 1647, Ottapalam, Palakkad District, Kerala; and Rs 10 lakh on The Darussalam Co-operative Urban Bank, Hyderabad, Telangana.

In a statement, the RBI said a Rs 55 lakh penalty has been imposed on The Visakhapatnam Co-operative Bank, Visakhapatnam, Andhra Pradesh for violation of directions related to ‘income recognition, asset classification, provisioning’ and finance for housing schemes.

The RBI has also imposed a fine of Rs 10 lakh each on The Nellore Cooperative Urban Bank Limited, Gandhi Nagar, Nellore District, Andhra Pradesh and Kakinada Co-operative Town Bank Ltd, Kakinada, East Godavari District, Andhra Pradesh.

Besides, Rs 1 lakh fine has been imposed on The Kendrapara Urban Cooperative Bank, Kendrapara and Rs 5 lakh on the National Urban Cooperative Bank Limited, Pratapgarh, Uttar Pradesh.

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