The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on Sher Nagrik Sahakari Bank which is based in the industrial city of Madhya Pradesh, Jabalpur.
The Urban Cooperative Bank was found to indulge in a number of irregularities which included violation of RBI directives relating to Know Your Customers (KYC) and Anti Money Laundering (AML)
It was also accused of charging of interest on loans and advances and violation of operational instructions issued to the bank by RBI under section 36(1) of the Banking Regulation Act.
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, the bank’s reply and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.
