RBI Imposes Rs.50000 Monetary Penalty on this Sahakari Bank; Check Name of Bank

RBI Imposes Rs.50000 Monetary Penalty on this Sahakari Bank; Check Name of Bank

vinti | Jun 7, 2022 |

RBI Imposes Rs.50000 Monetary Penalty on this Sahakari Bank; Check Name of Bank

RBI Imposes Rs.50000 Monetary Penalty on this Sahakari Bank; Check Name of Bank

Reserve Bank of India (RBl) imposed a monetary penalty of 50,000 (Rupees Fifty Thousand Only) on Jila Sahakari Kendriya Bank Maryadit, Morena (M.P.) for violating the RBI’s Know Your Customer directives (KYC) Policy. This penalty was imposed in the exercise of RBI’s powers due to the bank’s failure to follow RBI’s instructions.

This action is based on regulatory compliance issues and is not meant to be a judgment on the legitimacy of any transaction or agreement between the bank and its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2020, revealed, inter alia, that the bank had no system in place to identify suspicious transactions, in contravention of/non-compliance with the directions on Know Your Customer (KYC). Based on the same, a Notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.

After considering the bank’s replies, oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

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