A recent report from the RBI said that the regulator has imposed a penalty of Rs 5 lakh on city-based Kalupur Commercial Co-operative Bank (KCCB) for its non-adherence to mandatory banking rules.
Reports said that a penalty of Rs 5 lakh has been imposed on KCCB for violation related to Know Your Customer (KYC) norms, membership to co-operative credit societies, displaying short name of the bank, extension of credit outside the area of operations.
The Reserve Bank of India had issued a show cause notice to the bank in response to which the bank submitted a written reply and made further submissions during the personal hearing by Regional Director. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
The recent hike in base rates by the RBI has already leaded to the slowdown in loan business of the banks; it has also made it mandatory for all banks to increase their loan rates (home loan, personal loan, business loans, vehicle loan etc.)