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RBI penalises two UP-based cooperative banks for violating KYC norms

The RBI has also imposed a penalty of Rs 2 lakh on National Urban Co-operative Bank, Bahraich for non-filing of a return on asset and liabilities.

Published: 18th September 2018 06:09 PM  |   Last Updated: 18th September 2018 06:09 PM   |  A+A-

RBI logo used for representation (File | Reuters)

By PTI

MUMBAI: Reserve Bank of India Tuesday said it has imposed Rs 2 lakh penalty on National Sahkari Bank, Gorakhpur, Uttar Pradesh for violation of Know Your Customer (KYC) norms.

Besides, a penalty of Rs 2 lakh too has been slapped on National Urban Co-operative Bank, Bahraich (Uttar Pradesh) for non-filing of a return on asset and liabilities.

"The Reserve Bank of India has imposed a monetary penalty of Rs 2,00,000 on National Sahkari Bank Ltd, Gorakhpur, Uttar Pradesh for violation of RBI Instructions/Guidelines on Know Your Customer Norms," 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 had submitted a written reply.

After considering the facts of the case, the RBI came to the conclusion that the violations were substantiated and warranted imposition of penalty.

National Urban Co-operative Bank has been penalised for "continuous non-submission" of returns as prescribed under the Banking Regulation Act, 1949.

In this case also, a show cause notice was issued, "in response to which the bank had not submitted its reply".

After considering the facts of the case, the Reserve Bank said it came to the conclusion that the violation was substantiated and warranted imposition of penalty.



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