Mumbai, January 4: The RBI on Monday said it has imposed a total penalty of Rs 7 lakh on two co-operative banks, including Rs 5 lakh on Vyavasayik Sahakari Bank Maryadit, for violation of KYC and other norms. A penalty of Rs 2 lakh has been imposed on Maharashtra Nagari Sahakari Bank Maryadit, Latur.

In a statement, the Reserve Bank of India (RBI) said a penalty of Rs 5 lakh has been imposed on Vyavasayik Sahakari Bank Maryadit, Raipur for non-compliance with directions issued by RBI on opening of on-site ATM and Know Your Customer (KYC).

Giving details, RBI said the inspection report of the bank with reference to its financial position as on March 31, 2018 revealed, inter alia, non-compliance with directions on opening of on-site ATM and KYC. RBI to Conduct Simultaneous Sale-Purchase of Government Securities Under Open Market Operations on January 7.

In another release, RBI said the penalty on Maharashtra Nagari Sahakari Bank Maryadit has been imposed for non-compliance with directions on KYC. The RBI further said the action against the banks is based on deficiencies in regulatory compliance, and not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)