The Reserve Bank of India has imposed a monetary penalty of Rs 10.00 lakh on the Tiruchengode Co-operative Urban Bank based in Tiruchengode, Tamil Nadu.
The UCB was found guilty of non-adherence to directions issued under i) Exposure Norms and Statutory / Other Restrictions – UCBs and ii) Know Your Customer (KYC) Guidelines – Primary (Urban) Co-operative Banks.
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, clarifies RBI.