The Reserve Bank of India (RBI) has imposed a fine of Rs 2 lakh on Mumbai-based Sarvodaya Co-operative Bank for violating KYC (know your customer) norms.
The bank had not completed the KYC compliance due to which this penalty has been imposed. RBI has imposed this penalty for non-compliance of rules under Section 47A (1) (c) of the Banking Regulation Act, 1949.
RBI has, vide an order dated September 06, 2021, imposed a monetary penalty of Rs 2.00 lakh on Sarvodaya Sahakari Bank Ltd., Bhandup (W), Mumbai (Bank) for violation and non-compliance of the directions issued by it, the statement said.
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Earlier on September 3, RBI imposed a monetary penalty of Rs 50 lakh on Bombay Mercantile Co-operative Bank for non-compliance with the rules. The central bank had issued a statement saying that this violation is related to the rules of interest rate on deposits of the Reserve Bank of India.
RBI said that this action is based on the deficiency in regulatory compliance. This penalty will not affect the transactions or agreements of customers with the bank.
The central bank’s statutory inspection conducted on March 31, 2019 with reference to the bank’s financial position revealed that the bank had offered interest rates on NRE deposits, which were comparable to domestic rupee term deposits. Went.
The bank had sanctioned unsecured advances, resulting in non-compliance of directions issued by RBI. Subsequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI.
RBI also imposed a fine of Rs 25 lakh on Axis Bank on September 1 for breaking the rules. RBI said that Axis Bank has violated the rules of Know Your Customer (KYC) Direction, 2016, due to which this penalty has been imposed.
RBI said that this penalty was imposed due to non-compliance of the rules of the regulator. It will not have any effect on the transaction of the bank. From February 2020 to March 2020, RBI has examined how Axis Bank is maintaining the accounts of its customers. In the investigation, RBI found that Axis Bank has failed to comply with the rules issued by RBI.
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