The Reserve Bank of India (RBI) has imposed monetary penalties on two District Central Cooperative Banks (DCCBs) and two Urban Cooperative Banks (UCBs) for non-compliance with regulatory directions.
The Dakshin Dinajpur District Central Cooperative Bank, West Bengal, has been fined Rs 5.50 lakh for violations related to the ‘Know Your Customer (KYC)’ guidelines. Similarly, the Pataliputra Central Cooperative Bank, Bihar, has been penalized Rs 2.02 lakh for non-compliance with directions on KYC norms and membership of Credit Information Companies (CICs).
Among urban cooperative banks, the Urban Cooperative Bank Ltd., Cuttack, Odisha, was fined Rs 4.50 lakh for lapses in adhering to KYC provisions. Additionally, Dahanu Road Janata Cooperative Bank Ltd., Maharashtra, has been penalized Rs 1 lakh for failing to comply with directions under the Supervisory Action Framework (SAF).
The RBI clarified that these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transactions or agreements entered into by the banks with their customers.
