According to a recent press report the Reserve Bank has imposed a penalty of Rs ten lakh on the Gandhinagar Nagrik Cooperative Bank Ltd for violation of certain banking norms.
The regulator has imposed a monetary penalty of Rs one lakh on the bank for violations of allowing interest rebate in loan accounts of directors and non-adherence to Know Your Costumer (KYC) norms.
Reports said that the RBI had earlier issued a show cause notice to the bank, in response to which the bank submitted a written reply.
A statement from the Reserve Bank of India said that after considering the facts of the case, bank”s reply and personal submissions in the matter it has came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
The banks are already facing the heat of the hike in the base rates by the regulator which has lead to the slowdown in their loan business. The hike in base rates has made it mandatory for all banks to increase their loan rates (home loan, personal loan, business loans, vehicle loan etc.)