The Commercial Co-operative Bank Ltd., Jamnagar – Penalised
The Commercial Co-operative Bank Ltd., Jamnagar, had to be imposed a monetary penalty of Rs2.00 lakh (Rupees two lakh only) by RBI for
- not displaying its name properly in all stationery and advertisements,
- for making donation beyond prescribed limit
- and for not implementing Know Your Customer (KYC) norms.
The cooperative bank was not displaying its name properly not only in its stationery but also in advertisements. This would have implied that the status of the Bank was something other than of Cooperative Bank and would have attracted customers to place deposits with the Bank.
This seems to be a new trend of mis-displaying names amongst co-operative banks, to attract depositors. Well, the arms of the RBI inspectors are long!
The thumb rule for donations by co-operative banks is that the donations should be within 1 per cent of the published profits of the bank for the previous year.
Well, if the rule is clear, it would be better for co-operative banks to stick to the rule, rather than violate it and invite action from Reserve Bank of India.
The Commercial Co-operative Bank Ltd., Jamnagar, has five branches in Jamnagar, so fairly it is a mid-sized co-operative bank.
Jamnagar is famous since decades for its strategic location, as it has all branches of defense Indian Army, Navy and Air-force. Petroleum refineries are now an integral part of Jamnagar