RBI slaps fine on three Co-operative Banks in Maharashtra
RBI slaps fine on three Co-operative Banks in Maharashtra

The Reserve Bank of India (RBI) has imposed monetary penalties on Janseva Sahakari Bank, Excellent Co-operative Bank and Ajara Urban Co-operative Bank. In total from these three co-operative banks, RBI will collect a penalty worth Rs 8 lakh.

RBI imposed a monetary penalty of Rs 2 lakh in Pune-based Janseva Sahakari Bank Limited for contravention of the direction issued by RBI on Know Your Customer (KYC). The bank stated the 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.

In the case of Mumbai-based Excellent Co-operative Bank, the central bank imposed a monetary penalty of Rs 4 lakh. This penalty was imposed by RBI for none maintenance of deposit accounts and KYC. "This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by THE RBI," stated the central bank.

Meanwhile, Kolhapur-based The Ajara Urban Co-operative Bank has been asked to shell out Rs 2 lakh for contravention of direction issued by the RBI on ‘maintenance of deposit accounts’.

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