The Reserve Bank has levied monetary fines on four cooperative banks for regulatory compliance problems. Gujarat Mercantile Co-operative Bank Ltd, Nagarik Sahakari Bank Ltd, Makarpura Industrial Estate Co-operative Bank Ltd, and The Sevalia Urban Co-operative Bank Ltd are the co-operative banks.

The Reserve Bank of India has imposed a monetary penalty of Rs.4.50 lakh on Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad, Gujarat, for failing to comply with the RBI's directions on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)' and 'Maintenance of Cash Reserve Ratio (CRR)'. 

Not only did the Gujarat Mercantile Co-operative Bank exceed the prudential inter-bank gross exposure limit, but also overarched the prudential inter-bank counterparty exposure limit; thereby failing to maintain the minimum Cash Reserve Ratio (CRR) on certain days, according to the Reserve Bank.

For contravention of certain sections of the Banking Regulation Act, 1949 (BR Act) and RBI directions on 'Loans and advances to directors, relatives, firms/concerns, the RBI imposed a monetary penalty of ₹2.00 lakh on Nagarik Sahakari Bank LtdBabra, Gujarat  in which they are interested', 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)' and 'Co-operative Banks - Interest Rate on Deposits'.

The bank had not transferred an eligible amount to the Depositor Education and Awareness Fund, (ii) had sanctioned a credit facility to an individual with a relative of one of the bank's directors as guarantor, (iii) had exceeded the prudential inter-bank gross exposure limit, (iv) had exceeded the prudential inter-bank counterparty exposure limit, and (v) had not paid interest on matured unpaid term deposits for the period they remained unclaimed with the bank.

The Reserve Bank fined Makarpura Industrial Estate Co-operative Bank Ltd., Dist. Vadodara, Gujarat, Rs. 2.00 lakh for violating Section 26A (2) of the Banking Regulation Act, 1949 (BR Act) and RBI guidelines on 'Loans and advances to directors, relatives, firms/concerns in which they are interested.'

Instead of sanctioning a loan with a relative of the bank's director standing as guarantor, the Makarpura Industrial Estate Co-operative Bank did not transfer the appropriate amount to the Depositor Education and Awareness Fund,  according to the apex bank, 

The Reserve Bank fined Makarpura Industrial Estate Co-operative Bank Ltd., Dist. Vadodara, Gujarat, Rs. 2.00 lakh for violating Section 26A (2) of the Banking Regulation Act, 1949 (BR Act) and RBI guidelines on 'Loans and advances to directors, relatives, firms/concerns in which they are interested.'

According to the apex bank, the Makarpura Industrial Estate Co-operative Bank did not transfer the appropriate amount to the Depositor Education and Awareness Fund and instead sanctioned a loan with a relative of the bank's director standing as guarantor. 

Separately, the Reserve Bank imposed a 1.70 lakh monetary penalty on West End Housing Finance Limited for failing to comply with National Housing Bank (NHB) directions on 'Housing Finance Companies - Approval of Acquisition or Transfer of Control (NHB) Directions 2016' and RBI directions on 'Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021'.

According to the Reserve Bank, the failure of the corporation to obtain prior written consent from NHB or RBI for a change in its shareholding due to steady expansion over time, culminating in the transfer of shares over the permissible limit.