The Reserve Bank of India has imposed a monetary penalty of Rs 1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Panna (M.P.)
The Bank was faulted for contravention of the provisions of the Banking Regulation Act, 1949 (the Act), the Depositor Education and Awareness Fund Scheme, 2014 (the Scheme) and directions issued by the Reserve Bank of India (RBI) on Know Your Customer (KYC).
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, said RBI in a release.
Based on the inspection of the bank, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering the bank’s replies, oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the aforesaid charges of non-compliance with the provisions of the Act and RBI directions were substantiated and warranted imposition of monetary penalty.