The Reserve Bank of India imposed monetary penalties worth of Rs 12 lakh on four urban cooperative banks for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’
These banks are, Banking Employees Cooperative Bank, National Cooperative Bank, Mumbai, Rohika Central Cooperative Bank and Gujarat Rajya Karmachari Cooperative Bank.
The Reserve Bank of India (RBI) has, by an order dated June 26, 2024, imposed a monetary penalty of Rs 1 lakh on the Bank Employees’ Co-operative Bank Ltd., West Bengal (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC)’.
The Reserve Bank of India (RBI) has, by an order dated June 27, 2024, imposed a monetary penalty of Rs 2 lakh on the National Co-operative Bank Ltd., Mumbai, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’.
A monetary penalty of Rs 1.50 lakh has been imposed on the Rohika Central Co-operative Bank Limited, Madhubani, Bihar (the bank) for non-compliance with certain Directions issued by RBI on ‘Know Your Customer (KYC)’.
Besides, the RBI imposed a monetary penalty of Rs 7.50 lakh on the Gujarat Rajya Karmachari Co-operative Bank Ltd., Ahmedabad, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Financial Statements – Presentation and Disclosures’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’, ‘Co-operative Banks – Interest Rate on Deposits’ and contravention of the provisions of sub-section (2) of section 35 read with section 56 of the Banking Regulation Act, 1949 (BR Act).
These penalties have been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act as well as provisions of section 47A(1)(a) read with sections 46(2) and 56 of the BR Act.