The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on Vyavasayik Evam Audyogik Sahakari Bank Ltd., Morena in Madhya Pradesh.
The violation related to flouting of RBI’s norms on Know Your Customers (KYC), Anti Money Laundering (AML) and non compliance to RBI inspection report.
The UCB was actually faulted on violation of section 20 of the BR Act 1949 (AACS) which included host of other issues such as violation of the directives, instructions and guidelines of the Reserve Bank on operational instructions on loan against WHRs and credit exposure ceiling, director related loan, donations, etc.
The Reserve Bank of India had penalized the bank after issuing it a Show Cause Notice and examining its written reply.
