RBI has imposed monetary penalty on five banks. Private sector RBL Bank is also included in this list.
RBI Action: The Reserve Bank of India has taken strict action against 6 banks for violating the rules. Monetary penalty has been imposed on them. This list includes one private sector bank and 5 cooperative banks. The central bank has also issued a notification in this regard.
RBI has also taken action against private sector RBL Bank. RBI has imposed monetary penalty on Gujarat’s The Amod Nagrik Co-operative Bank Limited (Bharuch), The Karzon Nagrik Sahakari Bank Limited (Vadodara), The Rajula Nagrik Sahakari Bank Limited (Amreli) and The Vijay Commercial Co-operative Bank Limited (Rajkot). Apart from this, RBI has imposed a fine of Rs 3 lakh on Sundargarh District Central Co-operative Bank Limited of Odisha.
This private bank has been fined more than Rs 60 lakh
Private sector RBL Bank is accused of violating the rules related to KYC. The central bank has imposed a fine of Rs 61.40 lakh. The bank was unable to obtain the officially valid documents prescribed while opening a credit card account. Apart from this, instead of a unique identification code for each customer, multiple identification codes were also allotted to some customers.
Gujarat banks violated these rules (Banking News)
Amod Nagarik Sahakari Bank Limited has been fined Rs 1 lakh. The bank sanctioned loans in which the director’s relative was the guarantor. The bank also failed to upload the KYC report of some customer accounts to the Central KYC Record Registry within the stipulated time limit.
RBI has imposed a fine of Rs 2.10 lakh on The Karjan Nagarik Sahakari Bank Limited. This bank failed to transfer the eligible unclaimed amount to the Depositor Education and Awareness Fund within the stipulated time. Failed to maintain the minimum cash reserve ratio for some days during the year 2021-22. Failed to submit the credit information of its borrowers to any of the four CICs till March 31, 2023. Also failed to comply with the prudential inter-bank counterparty risk limit and to do risk-based periodic update of KYC of some customers as per the prescribed time.
A fine of Rs 1.25 lakh has been imposed on The Rajula Nagarik Sahakari Bank Limited. The bank sanctioned cash credit limits in which relatives of the bank’s director stood as guarantors. Failed to classify certain accounts as inactive where there were no customer induced transactions for more than 2 years.
RBI has imposed a penalty of Rs 1 lakh on The Vijay Commercial Co-operative Bank Ltd. The bank failed to conduct a periodic review of risk classification of certain accounts at least once in 6 months.
These allegations were leveled against Sundargarh District Central Co-operative Bank
Sundargarh District Central Co-operative Bank Ltd of Odisha sanctioned loans to its directors. Failed to transfer the eligible unclaimed amount to the Depositor Education and Awareness Fund. Failed to follow proper customer due diligence process while opening some new accounts.
