Page 15 - Banking Finance June 2022
P. 15
Co-Operative Bank
News
DICGC doles out Rs 3.5K The penalty has been imposed for non- the Dehra zone as director of the KCCB
compliance of the directions issued by during the stint of the previous Con-
crore to 22 UCBS
RBI on 'Placement of Deposits with other gress government.
As per the RBI Annual Report 21-22, banks', 'Monitoring and Reporting
The FIR states that a vacancy was cre-
settlement of claims of liquidated ur- Mechanism of Frauds', 'Income Recogni-
ated in the board of directors of the
ban co-operative banks totaling Rs tion, Asset Classification, Provisioning and
bank after the death of Ramesh Chand
1,225 crore and Rs 3,792 crore was Other Related Matters (IRAC norms)'
Chambiyal, director of the bank, from
provided to Unity Small Finance Bank and 'Management of Advances'.
the Dehra zone.
for making payment to the depositors
In a separate statement, the RBI said
The case was registered after the spe-
of erstwhile Punjab and Maharashtra
a penalty of Rs 1 lakh has been im-
cial investigating unit of the vigilance
Co-operative Bank. posed on the Noida Commercial Co-
found Sapiya guilty of violating rules
It is worth mentioning that an amend- operative Bank, Ghaziabad for contra- while appointing Rana as director.
ment to the DICGC Act in 2021-22 (re- vention of certain norms of the Bank-
RBI restricts withdrawals from
ing Regulation Act, 1949.
lating to interim payments) helped
Maharashtra's Shankarrao cooperative
settle claims worth Rs. 3,457 crore In both case, the penalties are based
bank
relating to 22 urban cooperative banks on deficiencies in regulatory compli-
The RBI imposed several restrictions
under AID. ance and is not intended to pronounce
on Shankarrao Pujari Nutan Nagari
upon the validity of any transaction or
The DICGC settles claims of depositors
Sahakari Bank Limited, Ichalkaranji,
agreement entered into by them with
of banks liquidated/ amalgamated and
Kolhapur, including on withdrawals, in
their customers, the RBI said.
banks under RBI's all-inclusive direction
view of the lender's worsening finan-
(AID). Once AID is imposed on an ur-
Kangra Central Coopera- cial position.
ban cooperative bank, the bank cannot
discharge its liabilities except as al- tive Bank ex-chief booked However, 99.84 per cent of the deposi-
tors are fully covered by the DICGC
lowed by RBI.
for graft
insurance scheme. Under the Deposit
The Vigilance and Anti-Corruption Bu- Insurance and Credit Guarantee Corpo-
RBI imposes penalty on
reau has booked former chairman of ration (DICGC) insurance scheme, de-
Co-operative Banks the Kangra Central Cooperative Bank posits of up to Rs 5 lakh are insured.
(KCCB) Jagdish Chand Sapiya under Sec-
RBI said it has imposed a penalty of Rs The RBI, in a statement, said the re-
tions 13(2) of the Prevention of Corrup-
58 lakh on Abhyudaya Co-operative strictions will remain in force for a pe-
tion Act.
Bank Limited, Mumbai for noncompli- riod of six months from the close of
ance with several directions, including Sapiya has been accused of illegally business on May 13, 2022 and are sub-
on NPA related norms. appointing Jaswant Singh Rana from ject to review.
BANKING FINANCE | JUNE | 2022 | 15