The Reserve Bank of India (RBI) on Monday imposed a monetary penalty on three banks - Rs 1.50 lakh on Dr Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagrik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial Urban Co-operative Bank Ltd - for violating the provisions of its regulations.
The banking regulator has imposed a monetary penalty on Dr. Ambedkar Nagarik Sahakari Bank Maryadit in Madhya Pradesh’s Gwalior for contravention of non-compliance with the directions issued to Urban Co-operative Banks on Exposure Norms & Statutory and other restrictions and Know Your Customer (KYC).
The central bank in a notification said that it "has imposed, by an order dated September 16, 2022, a monetary penalty of ₹25,000 (Rupees Twenty-Five thousand only) on Nagrik Sahakari Bank Maryadit, Vidisha (M.P.) (the bank) for contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Know Your Customer (KYC).”
In the case of Ravi Commercial Urban Co-operative Bank, the RBI said the risk assessment report of the bank based on its financial position as on March 31, 2021, revealed that it had failed to pay interest on term deposits which remained unclaimed after maturity. Based on the same, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.
Vidisha's Nagrik Sahakari Bank Maryadit has been fined because it had not carried out periodic updation of KYC of its customers.
RBI’s these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, it noted. RBI also stated that it had imposed monetary penalties after considering the bank's replies and oral submissions made during the personal hearing.
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