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RBI imposes penalty on 2 Chhattisgarh cooperative banks

RBI imposes penalty on 2 Chhattisgarh cooperative banks
05 August 2016 Current Affairs: Reserve Bank on Wednesday imposed penalty on two cooperative banks in Chhattisgarh under the Banking Regulation Act, 1949.

The RBI has imposed a monetary penalty of five lakh each on Zila Sahakari Kendriya Bank Maryadit, Raipur, and Raipur Urban Mercantile Cooperative Bank Limited.

Zila Sahakari Kendriya Bank Maryadit was penalised for violation of the directives/guidelines of the Central Bank on 'Know Your Customer' norms.

Raipur Urban Mercantile Cooperative Bank Ltd faced action for violation of the directives on prohibition of grant of loans and advances to own directors or their relatives or concerns in which they are interested.

RBI had issued a show-cause notice to both the banks earlier. After receiving their responses, it came to the conclusion that the violations were substantiated.


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