On Monday the Reserve Bank of India (RBl) imposed penalty on two urban co-op banks for violation of its norms.
A monetary penalty of Rs 5.00 lakh was imposed on Vyavasayik Sahakari Bank Maryadit, Raipur (the bank) for non-compliance with directions issued by RBI on opening of On-site ATM and Know Your Customer (KYC).
The penalty has been imposed in exercise of powers vested in RBI. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarifies RBI in a release.
RBl also imposed, by an order dated January 04, 2021 a monetary penalty of Rs 2.00 lakh on Maharashtra Nagari Sahakari Bank Maryadit, Latur (the bank) for non-compliance with directions issued by RBI on Know Your Customer (KYC).
The inspection report of the bank with reference to its financial position as on March 31, 2019 revealed, inter alia, non-compliance with RBI directions on Know Your Customer (KYC). Based on the same, a Notice was issued to the bank advising it to show cause as to why the penalty should not be imposed for non-compliance with the directions.
After considering the bank’s reply, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.