The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on Birdev Sahakari Bank Ltd, Ichalkaranji, Kolhapur in exercise of the powers vested in it.
The UCB was found violating the directives and guidelines of the Reserve Bank of India relating to interbank (gross) exposure limit, interbank counter party limit, unsecured advances limit.
The ucb was also faulted for non adherence to Know Your Customer (KYC) norms, read a press note of the apex bank.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.
After considering the facts of the case and bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.