The Reserve Bank has imposed a penalty of Rs one lakh on the Gandhinagar Nagrik Cooperative Bank Ltd for violation of certain banking norms.
“The RBI has imposed a monetary penalty of Rs one lakh on the Gandhinagar Nagrik Co-operative Bank Ltd…for violations of allowing interest rebate in loan accounts of directors and non-adherence to Know Your Costumer (KYC) norms,” the apex bank said in a statement.
RBI had earlier issued a show cause notice to the cooperative sector lender, in response to which the bank submitted a written reply.
“After considering the facts of the case, bank”s reply and personal submissions in the matter, RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty,” the statement said.