|
The Reserve Bank of India (RBI) on Thursday said that it has imposed a monetary penalty of Rs 1.50 lakh on the Bhuj Commercial Co-operative Bank, which is situated in Kachchh, Gujarat.
RBI said that by an order dated December 8, 2023, a penalty was imposed on the bank for non-compliance with the directions issued by them on 'Know Your Customer (KYC) Direction, 2016' and 'Reserve Bank of India (Co-operative Banks- Interest Rate on Deposits) Directions, 2016'. "This penalty has been imposed in the exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949," the press release said. RBI said that as per the statutory inspection of the cooperative bank conducted by them with reference to its financial position as of March 31, 2022, and examination of the inspection report, risk assessment report, and all correspondence, it has been revealed that the bank had not categorised its customers as low, medium or high-risk categories and accepted interest-free deposit accounts other than a current account. "Consequently, a notice was issued to the bank advising it to show cause as to why the penalty should not be imposed on it for failure to comply with the said directions, as stated therein," RBI said. The central bank further stated that after considering the bank's reply to the notice and oral submissions made by it during the personal hearing, it came to the conclusion that the charge of noncompliance was substantiated and warranted the imposition of a monetary penalty on the bank. (ANI)
|
