A penalty of Rs 5 lakh has been imposed on Kalupur Commercial Co-operative Bank (KCCB) in Ahmadabad for non-adherence to mandatory banking rules. RBI has found fault with the functioning of the bank.
KCCB violation related to Know Your Customer(KYC) norms, membership to co-operative credit societies, displaying short name of the bank, extension of credit outside the area of operations are some of the charges leveled against the bank by the RBI.
RBI had served a show cause notice on the cooperative bank in response to which the bank submitted a written reply and made further submissions during the personal hearing by the regional director.
After the formalities the apex bank felt that charges are correct. KCCB is a multi-state scheduled bank with over 30 branches. RBI imposed a fine of Rs 5 lakh on the bank.
.