The Reserve Bank of India has imposed a monetary penalty of Rs.5.00 lakh (Rupees Five Lakh only) on Vasai Vikas Sahakari Bank Ltd., Thane, Maharashtra for violation of the Reserve Bank of India’s directives by :
i) not following KYC norms while opening the Current Account of a director related firm.
ii) granting unsecured advances to director related firm.
iii) allowing cheque purchase beyond permissible limit.
iv) allowing unsecured advances beyond permissible limit.
v) allowing limits beyond exposure ceiling.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. Based on the reply, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty. Accordingly, it penalised the bank.
According to the website of the Bank it claims to have completed 24 years of purposeful existence of dedicated service to the common people through co-operation and self help. During this period there has been substantial rise in the deposits, advances and profits.
At present the Bank has 7 branches at Vasai, Virar, Navghar, Palghar, Saphale, Nallasopara and Borivali. It has already achieved Business Mix of Rs. 680 Crores.