MeitY: Social Media Intermediaries to Take Permission Before Launching AI Products in Country  ||  NBDSA Imposes Penalty on Several News Channels for Spreading Communal Hatred  ||  NBDSA Issue Guidelines For Broadcasting Information Related to LGBTQIA+ Community  ||  Gauhati High Court Frames Policy For Persons With Disabilities  ||  All. HC: Bail Granted to Assessee Since Proceedings u/s 70 and 74 of GST Act Pending for Too Long  ||  Kar. HC: Deflection From Terms of Compromise Will Lead to Re-Imposition of Conviction Order  ||  Supreme Court: MPs/MLAs Cannot Claim Immunity Under Constitution of India For Receiving Bribe  ||  Delhi High Court: Wife Igniting Animosity and Hostility in Child Against Father Amounts to Cruelty  ||  SC: Legal Representatives Not Responsible to Discharge Contractual Obligations of Deceased  ||  SC: Amend Arbitration Act For Prescribing Limitation Period For Applications u/s 11 of the Act    

Framework to regulate and oversee co-operative banks and deposits- (Press Information Bureau) (29 Nov 2016)



Reserve Bank of India (RBI) regulates and supervises the banking functions of State Cooperative Banks (StCBs)/District Central Cooperative Banks (DCCBs)/Urban Cooperative Banks (UCBs) under the various provisions of the Banking Regulation Act, 1949 (As applicable to Cooperative Societies) and the Reserve Bank of India Act, 1934. However, the matters related to incorporation, registration, management, audit, liquidation, etc. in respect of these banks fall under the jurisdiction of the concerned Registrar of co-operative societies. Under Section 35(6) of the Banking Regulation Act, 1949 (As applicable to Cooperative Societies), National Bank for Agriculture & Rural Development (NABARD) has concurrent powers to inspect StCBs and DCCBs.

NABARD has reported that as on 31.3.2015, the total deposits with 33 StCBs and 371 DCCBs were Rs. 356467 crore. Out of these cooperative banks, 12 banks were having negative net worth as on 31.3.2015. NABARD has informed that these banks are servicing their depositors.

RBI has informed that it has prescribed uniform Know Your Customer (KYC) norms for all commercial and cooperative banks and its Master Directions on KYC guidelines are uniformly applicable to all banks in India. RBI has further informed that it does not have any information on whether extant KYC norms are causing many cooperative banks to be used for money laundering and tax evasion. However, some instances of violations of KYC/Anti Money Laundering (AML) guidelines in UCBs have been observed by RBI and 32 UCBs have been imposed an aggregate penalty of Rs. 119.50 lakh by RBI for KYC/AML violations from 1st July, 2015 to 30th June, 2016. NABARD has reported that the compliance to KYC/ AML is monitored during inspection of StCBs and DCCBs and these banks are required to submit Cash Transaction Report, Suspicious Transaction Report, Counterfeit Currency Report and Non-Profit Organization Report, etc. to Financial Intelligence Unit-India regularly.


Share :        

Disclaimer | Copyright 2024 - All Rights Reserved