MUMBAI: The Reserve Bank has imposed a penalty of Rs 5 lakh on Transport Co-operative Bank, Indore for violation of various norms, including KYC.
The penalty has been imposed for violation of the "directives/guidelines of the Reserve Bank on loan exposure norms, KYC norms and compliance to RBI Inspection Report", the central bank said in a statement.
Earlier, the RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and the bank's reply in the matter, "the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty", the statement said.
Meanwhile, the RBI asked banks to keep the counters of their designated branches conducting government business open for government transactions up to 6 pm on March 30 and up to 8 pm on March 31, the last day of the current financial year. This is being done as the government has stated that all transactions with banks must be accounted for within the same financial year and had requested that certain special arrangements be made for the purpose, as in previous years.