UCBs fined for violations of KYC norms and loan to Directors

The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on two banks based in Raipur. They are Raipur Urban Mercantile Co-operative Bank and Zila Sahakari Kendriya Bank Maryadit, Raipur.

The Raipur Urban Mercantile Co-op Bank was found violating the directives and guidelines of Reserve Bank on prohibition of grant of loans and advances to its directors, their relatives and concerns, in which they are interested.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.

Zila Sahakari Kendriya Bank Maryadit, Raipur was fined for violation of the directives and guidelines of the Reserve Bank on Know Your Customer Norms.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.

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