The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Rajputana Mahila Urban Co-operative Bank, Jaipur for violation of the provisions of RBI guidelines on Know Your Customers (KYC) norms.
Cases of women cooperative bank being fined by the RBI has not been many in the past. As a result this incident of Jaipur based Rajputana Mahila Urban Co-operative Bank has made people talk.
The women urban cooperative bank has also been faulted on accounts of Anti Money Laundering (AML) and exposure to unsecured loans.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case, the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the monetary penalty.
