The Reserve Bank of India has imposed a monetary penalty on the Kapadwanj Peoples Co-operative Bank Ltd., Kapadwanj, Dist Kheda (Gujarat), in exercise of the powers vested in it.
It was found guilty of violations of operational instructions issued under Section 36(1) of B.R. Act, 1949 (AACS) and guidelines of Reserve Bank of India on extending loans and advances to directors/their relatives/concerns, in which they are interested, Know Your Custer (KYC)/Anti Money Laundering (AML) norms and implementation of Core Banking Solution.
The Reserve Bank of India had issued a Show Cause Notice to the bank in response to which the bank submitted a written reply.
After considering the facts of the case, the bank’s reply and the personal submission made in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.