RBI imposes Rs 5 lakh fine on Ghandhidham Cooperative Bank

MUMBAI: The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 lakh on Kutch-based cooperative sector lender Ghandhidham Cooperative Bank for violation of customer identification norms.

"The Reserve Bank has imposed a monetary penalty of Rs 5 lakh on the Ghandhidham Cooperative Bank Ltd, Adipur, Dist Kutch (Gujarat)... for violation of RBI's instructions relating to Know Your Customers (KYC) norms," the apex bank said in a statement.

The RBI had earlier issued a show cause notice to the bank, in response to which Ghandhidham Cooperative Bank had submitted a written reply.

"After considering the facts of the case and the bank's reply in the matter, the RBI came to the conclusion that the violation was substantiated and warranted imposition of the penalty," the statement said.

Source: EconomicTimes