The Reserve Bank of India (RBI) slammed a monetary penalty of Rs 5 lakh on Ahmedabad-based the Kalupur Commercial Co-operative Bank Ltd for violation of provisions of Banking Regulation Act.
"The RBI had issued a showcause notice to the bank in response to which the bank submitted a written reply and made further submissions during the personal hearing by the regional director. After considering the facts of the case and the bank's reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty," the apex bank said in an official statement. KCCB was found guilty for violation related to Know Your Customer (KYC) norms, membership to co-operative credit societies, displaying short name of the bank and extension of credit outside the area of operations.