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Thursday, April 28, 2011

Reserve Bank penalises two cooperative banks

MUMBAI: The Reserve Bank has imposed penalty of up to Rs 5 lakh on two cooperative sector lender -- Bhuj Co-operative Bank and Independence Co-operative Bank -- for violations of rules relating to various provisions.

A monetary penalty of Rs 5 lakh was imposed on the Kutch-based Bhuj Co-operative Bank for violations of RBI instructions relating to Know Yours Customer (KYC) norms, anti-money laundering guidelines, temporary overdrafts (TOD) and use of the bank's name without the word 'Co-operative', an official statement said.

In the case of Nashik-based Independence Co-operative Bank, a fine of Rs 1 lakh was imposed for violation directives related to loans for directors, it said.

The RBI had issued show-cause notices to both the lenders and the penalties were imposed after going through the submissions made by them, it added.

Source: EconomicTimes


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