The Reserve Bank of India has imposed, by an order dated August 04, 2021, a monetary penalty of Rs 7 lakh (Rupees Seven lakh only) on Nagarik Sahakari Bank Limited, Bhiwandi, Thane, Maharashtra.
The UCB was found guilty of non-compliance with directions issued by RBI on Exposure Norms and Statutory / Other Restrictions- UCBs and Know Your Customer (KYC) Directions.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
“The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, that the bank had (i) not adhered to the prudential inter-bank gross exposure limit (ii) not adhered to the prudential inter-bank single counter party exposure limit (iii) not allotted Unique Customer Identification Codes (UCICs) to all its new and existing customers (iv) no system of periodic review of risk categorization of accounts and (v) no system to track the accounts where KYC documents were falling due for updation”, reads a RBI release.