The Reserve Bank of India imposed monetary penalties on three banks including two urban cooperative banks and a district cooperative bank on Wednesday. It included a monetary penalty of Rs 1.00 lakh on DCCB, Supaul for non-compliance with RBI directions on ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
Besides, a penalty of Rs 10,000 has been imposed on the Manjeri Co-operative Urban Bank Ltd., Manjeri, Malappuram District, Kerala for non-compliance with the directions issued by RBI on “Customer Protection – Limiting Liability of Customers of Cooperative Banks in Unauthorised Electronic Banking Transactions”, “Basic Cyber Security Framework for Primary (Urban) Co-operative Banks (UCBs)”, and “Comprehensive Cyber Security Framework for Primary (Urban) Co-operative Banks (UCBs)”.
Similarly, RBI imposed a monetary penalty of Rs 1.50 lakh on The Ghatal Peoples Co-operative Bank Limited, West Bengal for non-compliance with directions issued by RBI on ‘Membership of Credit Information Companies (CICs)’, ‘Exposure Norms and Statutory/Other Restrictions – UCBs’, ‘Reserve Bank of India – (Know Your Customer (KYC)) Directions, 2016’ and for contravention of the provisions of section 26-A of the Banking Regulation Act, 1949 (BR Act) read with directions issued by RBI on ‘The Depositor Education and Awareness Fund Scheme, 2014 –Section 26A of Banking Regulation Act, 1949 – Operational Guidelines’.
These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarified the RBI.