RBI imposes monetary penalty on 2 Banks, Know Why?

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh (Rupees Three Lakh only) on The Karnal Central Cooperative Bank Limited, Haryana (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’.

The bank had failed to:

1. put in place a system of periodic review of risk categorisation of accounts; and
2. put in place a robust software for effective identification and reporting of suspicious transactions.

The Reserve Bank of India (RBl) has also imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Amravati Merchants Sahakari Bank Ltd., Amravati, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and Advances to Directors, their Relatives, and Firms / Concerns in which they are Interested’.

The penalty was imposed as the bank had sanctioned certain director-related loans.

0 Comments

*Enter your name

*Email not valid.

*2 characters minimum.

Do not change these fields following