RBI imposes Rs 5 lakh penalty on KCCB for violating norms

AHMEDABAD: The RBI today imposed apenalty of Rs 5 lakh on city-based Kalupur Commercial Co-operative Bank (KCCB) for its non-adherence to mandatorybanking rules, an official statement said.

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, it said.

The apex bank had served a show cause notice on the cooperative bank in response to which the bank submitted a written reply and made further submissions during the personal hearing by the regional director, the statement said.

On the bank's reply, the central bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, it said.

KCCB, is a multi-state scheduled bank with over 30 branches.

Source: EconomicTimes