RBI has imposed penalty on this bank for not complying with fraud monitoring mechanism

The Reserve Bank of India (RBI), on Monday, imposed a monetary penalty of Rs 20 lakh on Vasai Vikas Sahakari Bank Ltd., Vasai, Maharashtra for non-compliance with the banking regulator’s directions on the ‘Frauds monitoring and reporting mechanism’.

RBI, in a statement, said, “This penalty has been imposed in exercise of powers vested in RBI conferred under section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949 (BR Act).”

The central bank notification added that this action is based on deficiency 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.

RBI also stated that it had imposed monetary penalties after considering the bank's replies and oral submissions made during the personal hearing.