A recent press report said that the banking sector regulator Reserve Bank of India has imposed a penalty of Rs 100,000 Gandhinagar Nagrik Cooperative Bank Limited, which is located in the Indian state of Gujarat.
The Reserve Bank of India had found the bank guilty of allowing interest rebate in loan accounts of directors and non-adherence to Know Your Costumer (KYC) norms. The bank is involved in offering agricultural loan, personal loan, vehicle loans etc
Reports said that the Central bank formerly issued a show cause notice to the bank, in response to which the bank had submitted its reply. After considering the findings of the case and the bank’s response to the show cause notice, RBI decided the violations were substantiated and warranted imposition of the penalty.
Apart from Gandhinagar Nagrik Cooperative Bank Limited, the RBI has also imposed fines on several other cooperative banks operating in states of Gujarat, Maharashtra and West Bengal for violating the regulatory guidelines in recent times.
The RBI had recently imposed a penalty of Rs 500,000 on Ahmedabad, Gujarat-based cooperative bank Siddhi Co-operative Bank Limited for violating RBI guidelines on Know Your Customer (KYC)/Anti Money Laundering (AML) rules, and for submitting improper compliance of the observations made in its last inspection report.