Mumbai (Maharashtra) [India], June 6 (ANI): The Reserve Bank of India (RBl) on Monday said it has imposed a monetary penalty of Rs 50,000 on Jila Sahakari Kendriya Bank Maryadit, Morena, Madhya Pradesh, for non-compliance of Know Your Customer (KYC) related norms.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said in a statement.

Also Read | Moto G82 5G India Price Tipped Online: Report.

The inspection report of the bank based on its financial position as of March 31, 2020, revealed, inter alia, that the bank had no system in place to identify suspicious transactions, in contravention of/non-compliance with the directions on Know Your Customer (KYC).

"Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions," the RBI said.

Also Read | Apple's Online Store Goes Down Ahead of WWDC 2022 Event: Report.

After considering the bank's replies, oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty, the central bank added.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Act taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI, the central bank noted in the statement. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)