A recent press report said that the Reserve Bank of India (RBI) has penalised Gujarat-based co-operative sector lender – Porbandar Vibhagiya Nagarik Sahakari Bank (PVNSB) – for violation of its guidelines.
The RBI has imposed a fine of Rs. 1 lakh on PVNSB for violating RBI guidelines on ‘Know Your Customer (KYC)’ norms as well as Anti Money Laundering (AML).
Reports said that the RBI had issued a show-cause notice to the bank, and the bank in turn had submitted a written reply. The RBI came to a conclusion following the bank’s reply and the consideration of facts regarding the issue.
Reports also said that over a dozen co-operative banks from Gujarat have been fined by RBI in the past for violating its guidelines on AML and KYC.
The RBI is the central banking institution of India and it controls the monetary policy of the rupee. The regulator has recently hiked key interest rates by 25 basis points, which is its 12th such hike since March, 2010. The hike has made car loan, home loans and other loans more expensive.