The Reserve Financial institution of India (RBI) on Monday imposed a financial penalty on three banks – Rs 1.50 lakh on Dr Ambedkar Nagarik Sahakari Financial institution Maryadit, Rs 25,000 on Nagrik Sahakari Financial institution Maryadit, and Rs 1 lakh on Ravi Industrial City Co-operative Financial institution Ltd – for violating the provisions of its laws.
The banking regulator has imposed a financial penalty on Dr. Ambedkar Nagarik Sahakari Financial institution Maryadit in Madhya Pradesh’s Gwalior for contravention of non-compliance with the instructions issued to City Co-operative Banks on Publicity Norms & Statutory and different restrictions and Know Your Buyer (KYC).
The central financial institution in a notification stated that it “has imposed, by an order dated September 16, 2022, a financial penalty of ₹25,000 (Rupees Twenty-5 thousand solely) on Nagrik Sahakari Financial institution Maryadit, Vidisha (M.P.) (the financial institution) for contravention of/ non-compliance with the instructions issued by the RBI to City Co-operative Banks on Know Your Buyer (KYC).”
Within the case of Ravi Industrial City Co-operative Financial institution, the RBI stated the chance evaluation report of the financial institution primarily based on its monetary place as on March 31, 2021, revealed that it had didn’t pay curiosity on time period deposits which remained unclaimed after maturity. Primarily based on the identical, a discover was issued to the financial institution advising it to indicate trigger as to why a penalty shouldn’t be imposed for non-compliance with the instructions.
Vidisha’s Nagrik Sahakari Financial institution Maryadit has been fined as a result of it had not carried out periodic updation of KYC of its clients.
RBI’s these penalties are primarily based on deficiencies in regulatory compliance and should not meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients, it famous. RBI additionally acknowledged that it had imposed financial penalties after contemplating the financial institution’s replies and oral submissions made in the course of the private listening to.