The Reserve Bank of India (RBI) has imposed a fine of Rs 1 lakh on the District Co-operative Central Bank Maryadit of Madhya Pradesh on 15 September. The bank had violated the rules of Know Your Customer (KYC), due to which this penalty has been imposed. RBI said, the penalty has been imposed due to lack of regulatory compliance.
The RBI investigation report shows that the bank has not complied with the instructions issued by the central bank and the non-compliance of the instructions of the RBI has been confirmed. Hence imposition of monetary penalty was necessary.
On Tuesday, RBI imposed a fine of Rs 5 lakh on Kuppam Co-operative Town Bank located in Chittoor district of Andhra Pradesh. Action has been taken for violation of certain provisions of the directions issued by RBI, including the Master Circular on Income Recognition, Assets Classification, Provisions and other related matters and violation of Master Circular on Board of Directors of Urban Co-operative Banks.
Will not affect customers
However, this will not affect the transactions of the customers. In the investigation report of RBI, it has been found that the bank has not followed the necessary guidelines.
Rs 52 lakh fine imposed on these two banks
Let us tell you that RBI has been imposing fines on cooperative banks in the recent past. Two weeks ago, the central bank imposed heavy fines on two co-operative banks. RBI had also imposed a fine of Rs 50 lakh on Bombay Mercantile Co-operative Bank of Mumbai and Rs 2 lakh on Central Co-operative Bank Ltd., Akola (Maharashtra) based in Akola district for violation of norms.
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