The Reserve Bank of India has imposed a monetary penalty on Gomti Nagariya Sahkari Bank Ltd., Jaunpur in UP in exercise of powers vested under the provisions.
The UCB was found guilty of violation of RBI Instructions and Guidelines relating to Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs, Exceeding maximum limit on unsecured advances and Know Your Customer (KYC)/ Anti-Money Laundering (AML) guidelines.
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 and personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.