The Reserve Bank has imposed a penalty of Rs 1 lakh on Gujarat-based cooperative lender Baroda City Cooperative Bank for violation of customer identification norms.
“RBI has imposed a monetary penalty of Rs 1 lakh on the Baroda City Cooperative Bank for non-adherence to Know Your Customers (KYC) norms and incorrect compliance certificate furnished for the earlier inspection report,” the apex bank said in a statement.
RBI had earlier issued a show cause notice to Baroda City Cooperative Bank, in response to which it had submitted a written reply.
“After considering the facts of the case and the bank’s reply in the matter, the RBI came to the conclusion that the violation was substantiated and warranted imposition of the
penalty,” the statement said.
RBI has penalised around 70 small banks so far this year for lapses in implementing customer identification norms and various other violations. The penalties ranged from Rs 1 lakh to Rs 5 lakh.
