The Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks across different states for non-compliance with various regulatory directions, most notably those related to Know Your Customer (KYC) norms.
According to the RBI, the penalized institutions include Ranaghat People’s Co-operative Bank and Ghatal People’s Co-operative Bank from West Bengal, Begusarai Central Co-operative Bank and Gopalganj Central Co-operative Bank from Bihar, and Boudh Co-operative Central Bank from Odisha.
The Ranaghat People’s Co-operative Bank Ltd. was fined Rs 5 lakh for non-compliance with the RBI’s directions on KYC. Similarly, The Begusarai Central Co-operative Bank Ltd. faced a Rs 1.40 lakh penalty for KYC-related lapses. The Ghatal People’s Co-operative Bank Ltd. was also penalized Rs 5.50 lakh for failing to comply with KYC guidelines.
In Bihar, The Gopalganj Central Co-operative Bank Ltd. was fined Rs 5.50 lakh for violations of Section 9 read with Section 56 of the Banking Regulation Act, 1949, along with KYC non-compliance.
Meanwhile, The Boudh Co-operative Central Bank Ltd. of Odisha faced a modest penalty of Rs 10,000 for failing to comply with directions related to Membership of Credit Information Companies (CICs).
The RBI stated that these actions were based on findings from statutory inspections and subsequent review of compliance reports. It further clarified that the penalties are administrative in nature and do not affect the validity of any banking transactions or agreements entered into by these banks with their customers.
