Page 18 - Banking Finance October 2022

RBI imposes penalty on on the National Urban Cooperative claim amount of his/her deposits up to
Bank Limited, Pratapgarh, Uttar a monetary ceiling of 5,00,000/- (Ru-
Eight Cooperative banks
Pradesh. pees five lakh only) from Deposit Insur-
The Reserve Bank said it has imposed ance and Credit Guarantee Corpora-
penalty on eight cooperative banks for tion (DICGC) on liquidation."
RBI cancels banking license
violation of directions of RBI.
As on May 18, 2022, DICGC has al-
of Rupee Co-operative
A penalty of Rs 10 lakh has been im- ready paid 700.44 crore of the total
posed on Bharat Heavy Electricals Em- Bank insured deposits under the provisions of
ployees' Co-operative Bank, The Reserve Bank of India (RBI) can- Section 18A of the DICGC Act, 1961
Kailasapuram, Tiruchirappalli, Tamil celled the license of Rupee Co-opera- based on the willingness received from
Nadu; Rs 5 lakh on The Ottapalam Co- tive Bank Ltd in Pune. the concerned depositors of the bank.
operative Urban Bank Ltd, No.F. 1647,
According to a press release, the com-
Ottapalam, Palakkad District, Kerala;
missioner for cooperation and regis- RBI cancels licence of
and Rs 10 lakh on The Darussalam Co-
trar of Cooperative Societies,
operative Urban Bank, Hyderabad, Maharashtra-based Laxmi
Maharashtra has also been requested
Telangana.
to issue an order for winding up the Co-operative Bank
In a statement, the RBI said a Rs 55 bank and appoint a liquidator for the RBI cancelled the licence Solapur-
lakh penalty has been imposed on The bank. based Laxmi Co-operative Bank Limited
Visakhapatnam Co-operative Bank, for failing to comply with various pro-
"Consequent to the cancellation of its
Visakhapatnam, Andhra Pradesh for
license, "Rupee Co-operative Bank Ltd, visions of the Banking Regulation Act,
violation of directions related to 'in- 1949.
Pune" stands prohibited from conduct-
come recognition, asset classification,
ing the business of 'banking' which in- "The Reserve Bank cancelled the li-
provisioning' and finance for housing
cludes, among other things, accep- cence of the bank as it does not have
schemes.
tance of deposits and repayment of adequate capital and earning pros-
The RBI has also imposed a fine of Rs deposits as defined in Section 5(b) read pects. As such, it does not comply with
10 lakh each on The Nellore Coopera- with Section 56 of the Banking Regu- the provisions of Section 11(1) and Sec-
tive Urban Bank Limited, Gandhi Nagar, lation Act, 1949 with effect from Sep- tion 22 (3) (d) read with Section 56 of
Nellore District, Andhra Pradesh and tember 22, 2022," stated the RBI press
the Banking Regulation Act, 1949. The
Kakinada Co-operative Town Bank Ltd, release. bank has failed to comply with the re-
Kakinada, East Godavari District,
The RBI has directed the bank to pro- quirements of Sections 22(3) (a), 22 (3)
Andhra Pradesh.
vide every entitled depositor a full (b), 22(3)(c), 22(3) (d) and 22(3)(e) read
Besides, Rs 1 lakh fine has been im- amount of their deposits from DICGC. with Section 56 of the Banking Regu-
posed on The Kendrapara Urban Coop- It said, "every depositor would be en- lation Act, 1949," the central bank said
erative Bank, Kendrapara and Rs 5 lakh titled to receive deposit insurance in a release.

18 | 2022 | OCTOBER | BANKING FINANCE