RBI has imposed fine on two urban co-op banks namely Khatra People’s Co-operative Bank based in West Bengal and Ranuj Nagarik Sahakari Bank based in Gujarat for violation of KYC norms & ‘Loans and advances to directors”.
The Reserve Bank of India has imposed a monetary penalty of Rs 5,000/ on Khatra People’s Co-operative Bank Ltd., Khatra, West Bengal.
The UCB was faulted for contravention of RBI directions to Urban Cooperative Banks on Know Your Customer (KYC) Directions, 2016.
Another UCB on which RBI imposed a penalty last week was Patan based Ranuj Nagarik Sahakari Bank in Gujarat. RBI imposed a monetary penalty of Rs 1.00 lakh on it.
The UCB was faulted for contravention of directions issued by RBI on ‘Loans and advances to directors etc- directors as surety/guarantors- Clarification’.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarified the RBI.
