RBI has imposed a monetary penalty of Rs 1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Shivpuri (M.P.).
The co-op bank was faulted for contravention of the provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by the Reserve Bank of India (RBI) on Know Your Customer (KYC).
This penalty has been imposed taking into account the failure of the bank to adhere to the aforesaid directions issued by 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, says RBI.