The Reserve Bank of India (RBI) has imposed penalty on two Co-operative 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,” a statement issued from RBI's Regional Office here informed.
The Zila Sahakari Kendriya Bank Maryadit was penalised for violation of the directives/guidelines of the Central Bank on 'Know Your Customer' norms.
The Raipur Urban Mercantile Cooperative Bank ltd has 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, it stated. The RBI had issued a show-cause notice to both the banks earlier and after receiving their responses, it came to the conclusion that the violations were substantiated.