RBI imposes monetary penalty on Bettiah-based Cooperative Bank
Jul 11, 2022
Mumbai (Maharashtra) [India], July 11 : The Reserve Bank of India (RBI) on Monday said it has imposed Rs 2 lakh monetary penalty on Bettiah (Bihar)-based National Central Cooperative Bank Limited for non-compliance with directions related to KYC and depositor education and awareness fund.
The Reserve Bank of India (RBI) said in a statement that it has imposed, by an order dated July 8, 2022, a monetary penalty of Rs 2.0 lakh on The National Central Cooperative Bank Limited, Bettiah for contravention of/ non-compliance with the directions issued by RBI on The Depositor Education and Awareness Fund and Know Your Customer (KYC).
"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the RBI said.
The inspection report of the bank based on its financial position as on March 31, 2021, revealed, inter alia, violation / non-compliance with the directions issued by RBI to the extent the bank failed to transfer eligible balances to the Depositor Education and Awareness Fund and to categorise its customers on the basis of its assessment and risk perception as low, medium and high. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering the bank's reply and additional submissions made by it, RBI came to the conclusion that the aforementioned charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty, the central bank said.
