 "RBI imposes penalty on two co-op banks")
The Reserve Bank of India (RBI) on Thursday imposed monetary penalty on two cooperative banks in Gujarat for allegedly violating various provisions of the Banking Regulation Act, 1949.
RBI imposed a monetary penalty of Rs 5 lakh on the Rajkot Nagarik Sahakari Bank Ltd, Rajkot, and Rs 2 lakh on the Gandhidham Mercantile Co-operative Bank Ltd, Kutch, according to a statement posted on RBI's website.
The Rajkot-based cooperative bank was penalised under provisions of Section 47A (1)(b) of the Banking Regulation Act, 1949, for violations relating to income recognition and asset classification norms. According to a statement posted on the regulator's website, the bank had also violated Know Your Customer (KYC) norms.
RBI had issued a showcause notice to the bank in response to which the bank submitted a written reply. After considering the facts of the case and the bank's reply, the central bank concluded that the violation was substantiated and warranted imposition of penalty.
RBI imposed a monetary penalty of Rs 5 lakh on the Rajkot Nagarik Sahakari Bank Ltd, Rajkot, and Rs 2 lakh on the Gandhidham Mercantile Co-operative Bank Ltd, Kutch, according to a statement posted on RBI's website.
The Rajkot-based cooperative bank was penalised under provisions of Section 47A (1)(b) of the Banking Regulation Act, 1949, for violations relating to income recognition and asset classification norms. According to a statement posted on the regulator's website, the bank had also violated Know Your Customer (KYC) norms.
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The Gandhidham-based co-operative bank was penalised Rs 2 lakh for violation of operational instructions issued under Section 36(1) of the Banking Regulation Act, 1949.
RBI had issued a showcause notice to the bank in response to which the bank submitted a written reply. After considering the facts of the case and the bank's reply, the central bank concluded that the violation was substantiated and warranted imposition of penalty.