Rajkot Nagarik Sahakari Bank based in Rajkot in Gujarat has been faulted by the Reserve Bank of India for violations relating to income recognition and asset classification norms, violation of Section 6 (1) (j) of the Act, non compliance to the instructions in respect of issuance of Demand Draft/Postal Order against cash.
The bank was also faulted for non adherence to Know Your Customer norms and persistence of certain deficiencies pointed out in earlier inspection reports by the RBI.
The Reserve Bank of India had issued a Show Cause Notice to the bank based on the finding of inspection for the financial position as on March 31, 2012.
In response, the bank submitted a written reply and made personal submission to the Regional Director, Reserve Bank of India, Ahmedabad. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.