The Reserve Bank of India (RBI) has imposed a penalty on another cooperative bank for ignoring banking rules. A penalty has been imposed on the bank on September 15 for ignoring the banking rules by the bank. On September 15, RBI has imposed this penalty on Madhya Pradesh’s District Co-operative Central Bank Maryadit for ignoring KYC rules.
Bank fined
RBI has imposed a fine of Rs 1 lakh on Madhya Pradesh’s District Co-operative Central Bank Maryadit. This penalty has been imposed by the bank due to ignorance of Know Your Customer (KYC) rules. RBI said that the penalty has been imposed due to lack of regulatory compliance. The bank has been fined for non-compliance of banking instructions, neglect of KYC rules by the bank.
52 lakh fine imposed on these banks
Apart from MP’s District Cooperative Bank, on Tuesday, the RBI has imposed a fine of Rs 5 lakh on Kuppam Co-operative Town Bank located in Chittoor, Andhra Pradesh. Earlier, the central bank imposed a hefty fine of Rs 52 lakh on two co-operative banks, of which Mumbai’s Bombay Mercantile Co-operative Bank has been fined Rs 50 lakh and Akola-based Kendriya Co-operative Bank Ltd. of Rs 2 lakh. In the recent past, RBI has imposed penalties on about 6 co-operative banks for ignoring the Banking Act by banks.
What will be the effect on account holders
This penalty imposed on banks will not affect the account holders. His deposit will be completely safe. At the same time, they will not face any problem in any kind of transaction. They will continue to do transactions as before.
