The Reserve Bank of India (RBI) imposed monetary penalties on five urban cooperative banks in Tamil Nadu for non-compliance with specific directions related to Know Your Customer (KYC) norms.
The banks penalized include Virudhunagar Cooperative Urban Bank, Tamil Nadu Circle Postal Cooperative Bank, Cordite Factory Cooperative Bank, Arcot Cooperative Urban Bank, and Kamaraj Cooperative Town Bank.
Each bank faced monetary penalties of varying amounts, depending on the severity of their non-compliance.
The Virudhunagar Cooperative Urban Bank and the Tamil Nadu Circle Postal Cooperative Bank were each fined Rs 50,000 for failing to adhere to the RBI’s KYC directives.
Similarly, the Cordite Factory Cooperative Bank, based in Aravankadu, Nilgiris, was also penalized Rs 50,000 for similar lapses.
The Arcot Cooperative Urban Bank faced a penalty of Rs 25,000 for its non-compliance with KYC norms.
Meanwhile, the Kamaraj Cooperative Town Bank received the highest penalty of Rs 2 lakh. This penalty was imposed for non-compliance not only with KYC norms but also with directions under the Supervisory Action Framework (SAF) and prudential norms on capital adequacy for urban cooperative banks.
