The Reserve Bank of India (RBI) has fined three co-operative banks and one non-banking financial company (NBFC) for violation of regulatory norms.

The names of these co-operative banks are Annasaheb Magar Sahakari Bank; Janata Urban Co-operative Bank; and The Jawhar Urban Co-operative Bank. The NBFC penalised is Finquest Financial Solutions.

The central bank imposed Rs 4 lakh penalty on Annasaheb Magar Sahakari Bank, Rs 1 lakh each on Janata Urban Co-operative Bank, and The Jawhar Urban Co-operative Bank, and Rs 1.20 lakh on Finquest Financial Solutions, the central bank said in a release.

The Annasaheb Magar Sahakari Bank was penalised as the bank had not conducted periodic reviews of risk categorisation of accounts, had collected fixed penal charges for shortfall in maintenance of minimum balance in saving bank accounts, instead of proportionate to the extent of shortfall and had not adhered to the prudential norms relating to income recognition, asset classification and provisioning, the release said.

A monetary penalty on Finquest Financial Solutions was imposed as the company did not conduct the risk categorisation of its borrowers, make good the shortfall in the LTV (loan-to- value) ratio of 50% for loans granted against collateral of shares within 7 working days and report data to all CICs as per the extant guidelines, the release added.