Maharashtra based Co-operative banks penalised by RBI
A total penalty of rupees 8 lakhs was imposed by RBI on three Maharashtra based co-operative banks Excellent Co-operative bank, Janseva Sahhakari Bank Limited and Ajara Urban Co-operative bank.
The excellent bank faced a penalty due to contravention of RBI’s directions on ‘maintaining deposit accounts’ and ‘know your customer (KYC).
Janeva Sahakari suffered a penalty due to the contravention of ‘Know your customer (KYC)’. Ajara Urban Co-operative bank did the contravention of ‘maintaining deposit accounts.
The RBI clearly mentioned that this penalty is sole because of noncompliance to the directions of RBI and has nothing to do with the validity of any transaction or agreement entered into by the bank and customers.
It’s evident how important it is to comply with the rules and directions of RBI. Not complying will land the company up in problems.