The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on the Kurmanchal Nagar Sahkari Bank Ltd., Nainital, Uttarakhand, in exercise of the powers vested in it.
The UCB was found violating the directive and guideline of the Reserve Bank of India on loans and advances to directors, their relatives and concerns in which they are interested.
Kurmanchal Nagar Sahkari Bank also faulted on Know Your Customers (KYC) and Anti Money Laundering (AML) requirements.
The Reserve Bank of India had issued a Show Cause Notice (SCN) to the bank, in response to which the bank submitted a written reply. Based on careful examination of the facts of the matter and the reply of the bank, Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty.