The Reserve Bank of India (RBI) has imposed a penalty of Rs 60.20 lakh on The Bihar State Co-operative Bank Limited, Patna. The RBI found that the bank failed to put in place robust software for identifying and reporting suspicious transactions. It also failed to meet the deadlines for submitting statutory returns and off-site surveillance system returns, among other things. The central bank issued a notice to the bank and imposed a fine after reviewing its reply.
In separate penalties, a monetary penalty of Rs 6 lakh was imposed on Jowai Cooperative Urban Bank Limited, Meghalaya, for non-compliance with regulatory guidelines. The Telangana State Cooperative Apex Bank Limited, Hyderabad, was penalized Rs 2 lakh for failing to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. The Co-operative Bank of Rajkot Ltd, Rajkot (Gujarat), was fined Rs 10 lakh for contravention of directions in reporting unauthorized transactions by customers to banks, the use of primary (urban) co-operative banks’ names as appearing in the Certificate of Registration and the Licence, and Fraud in UCBs: Changes in Monitoring and Reporting mechanism.
Chennai-based Equitas Holdings and Mukand Global Finance have given up their non-banking finance company licenses granted to them earlier.
