The Reserve Bank of India (RBI) has imposed a penalty of up to Rs 5 lakh on two cooperative sector lenders — Bhuj Co-operative Bank and Independence Co-operative Bank — for violation of rules related to various provisions.
A monetary penalty of Rs 5 lakh was imposed on the Kutch-based Bhuj Co-operative Bank for violation of RBI’s instructions related to ‘Know Your Customer’ (KYC) norms, anti-money laundering guidelines, temporary overdrafts and use of the bank’s name without the word ‘Co-operative’, an official statement said.
In the case of Nashik-based Independence Co-operative Bank, a fine of Rs 1 lakh was imposed for violation directives related to loans for directors, it said.
RBI had issued show-cause notices to both lenders and the penalties were imposed after going through the submissions made by them, it added.
