The central bank has also imposed a monetary penalty worth ₹10 lakh on The Darussalam Co-operative Urban Bank Ltd., Hyderabad, Telangana. The bank was found to be violating RBI directions on income recognition, asset classification, and provisioning rules.

The highest penalty among all banks was imposed on The Visakhapatnam Co-operative Bank Ltd, Visakhapatnam, Andhra Pradesh. The RBI has imposed a monetary penalty of ₹55 lakh on the co-operative bank for violation of directions issued under income recognition, asset classification, provisioning and finance for housing schemes rules.

The Nellore Co-operative Urban Bank Limited, Gandhi Nagar, Andhra Pradesh, will have to pay a penalty worth ₹10.00 lakh for violations under the prohibition of loans and advances to directors and their relatives and firms and exposure norms and statutory rules.

Kakinada Co-operative Town Bank Ltd, Kakinada, East Godavari District, Andhra Pradesh, will have to pay a fine worth ₹10.00 lakh. The violations include non-adherence to directions issued under income recognition, asset classification, provisioning and establishment of depositor education and awareness fund.

The Kendrapara Urban Cooperative Bank, Kendrapara, Odisha, and the National Urban Co-operative Bank Limited, Pratapgarh, Uttar Pradesh, will pay penalties worth ₹1 lakh and ₹5 lakh, respectively, for violating the RBI's KYC and income recognition and asset classification rules, respectively.

Earlier this month, the RBI imposed a monetary penalty on eight banks and cancelled the licences of two non-banking finance companies (NBFCs). Additionally, it also imposed a monetary penalty on an NBFC. The monetary penalty imposed on these banks ranged from ₹1 lakh to ₹2.3 crore.

The central bank also cancelled the licence of Pune-based Rupee Co-operative Bank Ltd., on August 10, 2022, for lack of adequate capital and earning prospects. The bank, which had been facing consistent losses, will cease to carry on banking business, with effect from September 22, 2022. The commissioner for cooperation and registrar of cooperative societies, Maharashtra, will issue an order for winding up the bank and appoint a liquidator. The RBI says the bank has repaid around ₹700 crore to its 64,000 depositors.

Rupee Co-operative Bank

RBI imposes financial penalty on 8 banks for breach of norms