The bank had violated the rules of Know Your Customer (KYC), due to which this penalty has been imposed. RBI said, the penalty has been imposed due to lack of regulatory compliance.
The Reserve Bank of India (RBI) has imposed a fine of Rs 1 lakh on the District Co-operative Central Bank Maryadit of Madhya Pradesh on 15 September. The bank had violated the rules of Know Your Customer (KYC), due to which this penalty has been imposed. RBI said, the penalty has been imposed due to lack of regulatory compliance. Also Read: Uber launches new service for office goers, will be available in seven cities including Delhi, Mumbai, Kolkata
The RBI investigation report shows that the bank has not complied with the instructions issued by the central bank and the non-compliance of the instructions of the RBI has been confirmed. Hence imposition of monetary penalty was necessary.
On Tuesday, RBI imposed a fine of Rs 5 lakh on Kuppam Co-operative Town Bank located in Chittoor district of Andhra Pradesh. Action has been taken for violation of certain provisions of the directions issued by RBI, including the Master Circular on Income Recognition, Assets Classification, Provisions and other related matters and violation of Master Circular on Board of Directors of Urban Co-operative Banks. Also Read: LIC IPO: Central government wants valuation of Rs 10 lakh crore, which deficit will be met from the fund raised
Will not affect customers
However, this will not affect the transactions of the customers. In the investigation report of RBI, it has been found that the bank has not followed the necessary guidelines.
Rs 52 lakh fine imposed on these two banks
Let us tell you that RBI has been imposing fines on cooperative banks in the recent past. Two weeks ago, the central bank imposed heavy fines on two co-operative banks. RBI had also imposed a fine of Rs 50 lakh on Bombay Mercantile Co-operative Bank of Mumbai and Rs 2 lakh on Central Co-operative Bank Ltd., Akola (Maharashtra) based in Akola district for violation of norms.
A fine of Rs 1 crore was imposed on this bank
The Reserve Bank of India (RBI) recently imposed a fine of Rs 1 crore on cooperative sector cooperative Rabobank UA for lapses in regulatory compliance. The central bank had said that it had conducted a Supervisory Appraisal Statutory Investigation (ISE) investigation regarding the financial position of the bank as of March 31, 2020. In which the company was found to be in violation of the provisions of the Banking Regulation Act and the instructions issued by the RBI, the RBI had also issued a show cause notice to the bank in this regard. Also Read: With just one click, the bank account will be empty, RBI issued alert
After the bank’s response to the notice, the reply received in the personal hearing and subsequent additional information given by the bank, the RBI found the bank guilty of violation of the rules and imposed a fine while taking action.
This bank of Kolkata also fined
Recently, the Reserve Bank also imposed a fine of Rs 5 lakh on Village Financial Services of Kolkata for non-compliance of certain provisions of KYC rules. The central bank had also told that it has imposed a fine of Rs 13 lakh on Ahmednagar Merchant Co-operative Bank, Rs 2 lakh on Mahila Vikas Co-operative Bank of Ahmedabad.
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