The RBI has once again tightened its grip. It has imposed monetary fines on six banks for alleged non-compliance with regulations, which were revealed during an inspection. Let’s find out if you have an account with one of these banks.
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RBI action: Ahead of Diwali, the Reserve Bank of India (RBI) has once again taken significant action. Five cooperative banks have been simultaneously fined under Section 47A(1)(c), Section 46(4)(i), and Section 56 of the RBI Banking Regulation Act, 1949, for violating banking regulations, including KYC. This action was taken under Section 47A(1)(c), Section 46(4)(i), and Section 56 of the RBI Banking Regulation Act, 1949. The list includes two banks each from Bihar and West Bengal, and one from Odisha.
The RBI announced this action through a press release on Thursday, October 16. An inspection was conducted on March 31, 2024, to check the banks’ financial status. During the inspection, it was discovered that certain guidelines were not being properly complied with by the banks. Upon discovering these violations, the RBI issued show-cause notices to all the banks. Based on the replies to the notices and the presentations made during the personal hearing, the allegations were confirmed. Following this, the decision to impose penalties on all these banks was made.
Two Bihar banks face fines
The Gopalganj Central Co-operative Bank Ltd. in Bihar has been fined ₹5.50 lakh for failing to upload customer KYC records to the Central KYC Records Registry within the stipulated timeframe and for failing to dispose of certain non-banking assets on time. The Begusarai Central Co-operative Bank Ltd., located in Begusarai, Bihar, also failed to upload its KYC records to the Central KYC Records Registry in a timely manner. Therefore, it will now have to pay a fine of ₹1.40 lakh.
Two banks and a company fined in West Bengal
Ranaghat People’s Co-operative Bank Limited has been fined ₹5 lakh for failing to upload customer KYC records to the Central KYC Records Registry within the stipulated timeframe. The Ghatal People’s Co-operative Bank Limited also failed to dispose of certain non-banking assets within the stipulated period. It failed to review the risk classification of accounts, which should have been conducted at least once every six months, and failed to upload KYC records. Following the allegations being substantiated, it has been fined ₹5.50 lakh.
The RBI has imposed a fine of ₹50,000 on Sahara Housingfina Corporation Limited in West Bengal for failing to upload customer KYC records to the Central KYC Records Registry within the stipulated timeframe.
Penalty imposed on this bank in Odisha
The Boudh Co-operative Central Bank Limited has been fined ₹10,000. It failed to submit customer loan information to any of the three credit information companies. The RBI has stated that this action will not impact any transactions or agreements between customers and banks.
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