In a regulatory crackdown, the Reserve Bank of India has imposed monetary penalties on four cooperative banks for various violations of banking norms, with the highest penalty of Rs 16 lakh levied on Andaman & Nicobar State Co-operative Bank Ltd.
The action was taken for contravention of provisions under Section 26A read with Section 56 of the Banking Regulation Act, 1949, and non-compliance with RBI’s Know Your Customer (KYC) norms.
Raiganj Central Co-operative Bank, West Bengal, was penalised Rs 3.10 lakh for failing to comply with KYC guidelines.
Chanasma Nagrik Sahakari Bank Ltd, Gujarat, faced a penalty of Rs 1 lakh for lapses in implementing RBI’s customer protection norms regarding unauthorised electronic transactions.
Meanwhile, Katihar District Central Co-operative Bank Ltd, Bihar, has been fined Rs 3.03 lakh for contravening Section 20 read with Section 56 of the BR Act and non-compliance with RBI’s directions on membership of Credit Information Companies.
The RBI clarified that these penalties 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 banks with their customers.
