Page 19 - Banking Finance August 2022

Urban Cooperative Banks conclave organised by the National Fund and Know Your Customer (KYC)
Federation of Urban Cooperative Banks norms.
won't be treated as sec-
and Credit Societies (NAFCUB).
In each case, the RBI added, the pen-
ond-class: Amit Shah Shah, however, said that the responsi- alty is based on deficiencies in regula-
Assuring the cooperative sector that it bility of development lies with the co- tory compliance and is not intended to
will no longer be treated like a "sec- operative sector. pronounce upon the validity of any
ond-grade citizen", Minister for Home transaction or agreement entered into
and Cooperation Amit Shah asked the by the banks with their customers.
RBI penalises 3 co-opera-
Urban Cooperative Banks (UCBs) to
tive banks
undertake institutional reforms. RBI's deposit insurance
The Reserve Bank said it has imposed
Addressing the National Conclave on arm to pay depositors of
penalty on three cooperatives banks.
Scheduled and Multi State Urban Co-
two co-operative banks in
operative Banks and Credit Societies, In a statement, the RBI said a penalty
Shah said UCBs account only 3.25 per of Rs. 37.50 lakh has been imposed on August
cent of the total bank deposits and 2.69 The Maharashtra State Co-operative
DICGC will pay the eligible depositors
per cent of the total advances in the Bank, Mumbai for non-compliance of Shankarrao Pujari Nutan Sahakari
country. with the directions issued by Nabard Bank, Ichalkaranji, and Harihareshwar
on 'Frauds - Guidelines for Classifica-
"We should take a resolve to expand Sahakari Bank, next month. DICGC, a
tion, Reporting and Monitoring'.
this. I assure you that the Narendra wholly-owned subsidiary of the RBI,
Modi government is in power and you In another release, it said a Rs 50 lakh provides an insurance cover of up to Rs
will no longer be treated as a second- fine has been slapped on The Nasik 5 lakh on bank deposits.
grade citizen. You should not worry," Merchant's Co-operative Bank for con- Depositors of the two Maharashtra-
Shah said. travention of directions issued by the based banks will get the amount cred-
RBI on 'Placement of deposits with ited to the alternate bank account
"You will be treated on a par. You will
other banks' and 'Interest Rate on specified by them, or on their consent,
not get any special favour but you will
Deposits'. to their Aadhaar-linked bank accounts.
not be treated like a second-grade citi-
zen in respect of be it taxation, BR Act A penalty of Rs 2 lakh has been Eligible depositors of Shankarrao Pujari
[The Banking Regulation Act, 1949] or imposed on The National Central Coop- Nutan Sahakari Bank will get the pay-
the Reserve Bank's norms…. Urban erative Bank Limited, Bettiah for non- ment on August 10, and those of
Cooperative Banks will be treated compliance with provisions of the Harihareshwar Sahakari Bank on Au-
equally," said Shah, addressing the Depositor Education and Awareness gust 28, according to a DICGC circular.

BANKING FINANCE | AUGUST | 2022 | 19