The Reserve Bank of India has penalized Rajkot-based Rajkot Commercial Co-operative Bank Limited for violation of RBI’s instructions regarding grant of unsecured advances in excess of prescribed ceiling and director related advances.
The RBI has slammed a penalty of Rs 2 lakh on the urban commercial cooperative bank.
In a statement issued on Thursday, the RBI said, a monetary penalty of Rs 2 lakh on Rajkot Commercial Co-operative Bank Limited, Rajkot, Gujarat, in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violation of Reserve Bank of India’s instructions regarding grant of unsecured advances in excess of prescribed ceiling and director related advances.
The RBI had issued a show cause notice to the bank in response to which the bank had submitted a written reply. After considering the facts of the case and the bank’s reply as also personal submissions in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty, the statement said.
Further, on Tuesday, the RBI had fined another Gujarat based cooperative bank for violation of RBI norms. The apex bank imposed a monetary penalty of Rs 1 lakh on the Becharaji Nagarik Sahakari Bank Limited, Becharaji in Mehsana district of Gujarat.
The penalty was slammed for violation of RBI’s instructions relating to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines.