Thursday proved unlucky for UCBs as two of them based in Pune were penalized by the RBI. They are Muslim Co-operative Bank and Jijamata Mahila Sahakari Bank.
The Reserve Bank of India (RBI) has imposed, by an order dated August 26, 2021, a monetary penalty of ?2.00 lakh (Rupees Two lakh only) on The Muslim Co-operative Bank Limited, Pune, Maharashtra (the bank) for contravention of/non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC)’.
The Regulator also imposed a monetary penalty of Rs 3 lakh (Rupees Three lakh only) on Jijamata Mahila Sahakari Bank, Pune, Maharashtra (the bank) for contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs.
The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarifies RBI.
