Reserve Bank of India penalises 16 Central Co-operative Banks (CCBs)

          As per the latest available statistics, there are 372+ District Central Cooperative Banks in India.  The DCCBs have a number of cooperative societies and cooperative banks under their umbrella.

          This publication has a number of useful information on DCCBs in India.

          A brief history of DCCBs in India can be read here

          On 31^st March 2015, Reserve bank of India announced an imposition of a monetary penalty of  INR 5.00 lakh (Rupees five lakh only) each on 16 Central Co-operative Banks listed below.

          The penalties have been imposed in exercise of powers vested in it under the provisions of Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for non-adherence to Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.

Sr.No. Name of the Bank

1. The Dumka Central Co-operative Bank Ltd., Dumka (Jharkhand)

2. The Gumla Simdega Central Co-operative Bank Ltd., (Jharkhand)

3. The Dhanbad Central Co-operative Bank Ltd., (Jharkhand)

4. The Rewari Central Co-operative Bank Ltd., Rewari (Haryana)

5. The Mansa Central Co-operative Bank Ltd., Mansa (Punjab)

6. The Jind Central Co-operative Bank Ltd., (Haryana)

7. The Gopalganj Central Co-operative Bank Ltd., Gopalganj (Bihar)

8. Ajmer Central Co-operative Bank Ltd., Ajmer (Rajasthan)

9. Hanumangarh Kendriya Sahakari Bank Ltd., (Rajasthan)

10. The Central Co-operative Bank Ltd., Bikaner (Rajasthan)

11. The Sirohi Central Co-operative Bank Ltd., Sirohi (Rajasthan)

12. The Bundi Central Co-operative Bank Ltd., Bundi (Rajasthan)

13. The Boudh Co-operative Central Bank Ltd., (Odisha)

14. Bhawanipatna Central Co-operative Bank, (Odisha)

15. Cuttack Central Co-operative Bank Ltd., (Odisha)

16. The Sambalpur District Co-operative Central Bank Ltd., (Odisha)

As per Standard Operating Practice, Reserve Bank of India had issued a show cause notice to the banks in response to which the banks submitted a written reply.

After considering the facts of the cases, the banks’ replies and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.