The Reserve Bank of India has imposed a monetary penalty of Rs 4.50 lakh on Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh.
The Bank was faulted for contravention of the Directions issued by RBI to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions-UCBs and 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, clarified RBI.
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 and oral submissions made during personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.
