The Reserve Bank of India has imposed a penalty ranging from ₹50,000 to ₹7 lakh on 20 co-operative banks. The Apex bank also slapped a penalty of ₹2.66 crore on Bank of Bahrain & Kuwait BSC, India. The banks are penalised for non-compliance with directions on cyber security framework.
Out of the 20 co-operative banks penalised, 17 are from Gujarat. Maximum penalty of Rs. 7 lacs was imposed on Bhuj Mercantile Co-op bank. The bank was found providing credit facilities to the close family and relatives of the directors in contravention of the laid down rules. Kutch District Co-op Bank had failed to maintain the required cash reserve ratio. Godhra Janta Sahakari Bank too defaulted on the issue of CRR.
Bank of Bahrain & Kuwait BSC, India operations failed to implement systems to detect unusual and unauthorized, internal or external activities in its database.
Other banks which attracted the penalty are Bassein Catholic Co-operative Bank, Vasai ( Maharashtra) ₹50 lakh, The Delhi State Cooperative Bank ₹30.85 lakh and The Andhra Pradesh State Co-operative Bank, Vijayawada ₹26,91,330
The penalty was imposed after considering the banks’ reply to the notice sent and personal hearing.
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