The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 lakh on Tura Urban Cooperative Bank Ltd for failing to comply with the RBI’s Supervisory Action Framework (SAF).
According to an RBI press release issued recently, an inspection of the financial position of Tura Urban Cooperative Bank Ltd as of March 31, 2023, revealed that the bank incurred capital expenditure above the allowed limit of Rs 25,000 per year without prior RBI approval and issued fresh loans exceeding the SAF-prescribed exposure limits.
The RBI stated that all these penalties are due to regulatory deficiencies and do not affect any transactions or agreements between the banks and their customers.
Furthermore, the imposition of these penalties does not preclude additional actions that the RBI may initiate in response to ongoing compliance monitoring.
Four other cooperative banks in Gujarat and Maharashtra were also fined by the RBI for failing to meet regulatory standards.
