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RBI penalises four co-operative banks for violating KYC norms

India TV Business Desk Mumbai 17 Aug 2016, 7:07:03 AM IST
India TV Business Desk

The Reserve Bank on India (RBI) has imposed penalties of up to Rs 5 lakh on four co-operative banks for violation of norms.

The bank on Tuesday said that it has imposed a monetary penalty of Rs 5 lakh on The Co-operative City Bank, Guwahati, for flouting know-your-customer (KYC) norms and non-adherence to requirements relating to identification and reporting of suspicious transactions.

A penalty of Rs 2 lakh has been imposed on Indapur Urban Co-operative Bank, in Pune dsitrict of Maharashtra for violations of norms related to KYC and anti-money laundering and credit exposure norms on loans.

RBI has also imposed a penalty of Rs 1 lakh on Shri Dadasaheb Gajmal Co-operative Bank in Pachora of Maharashtra's district of Jalgaon for violation of norms relating to creation of floating charge on its assets without prior permission.

In a separate statement, RBI said it has imposed a penalty of Rs 1 lakh on the Model Co-operative Urban Bank, Hyderabad, Telangana for violation of directives and guidelines on loans and advances to directors and their relatives.