RBI imposes Rs 10 lakh penalty on The Tiruchengode Co-operative Urban Bank

New Delhi [India], June 28 (ANI): The Reserve Bank of India (RBI) has imposed a penalty of Rs 10 lakh on The Tiruchengode Co-operative Urban Bank, Tiruchengode, Tamil Nadu, for non-adherence or violation of directions issued under various guidelines including Know Your Customer (KYC) Guidelines, the central bank said in a statement.

The penalty has been imposed in the exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (AACS).

"This 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," the statement said.

The inspection report of the bank based on its financial position as of March 31, 2020, revealed violations or non-compliance with the norms.

Based on the same report, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for non-compliance, it added.

"After considering the bank's reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty."

Earlier on Friday, the central had imposed a penalty of Rs 57.50 lakh on Indian Overseas Bank for non-compliance with certain directions.

The non-compliance included failing to report certain instances of frauds involving ATM card cloning or skimming within three weeks from the date of detection, among others. (ANI)

Source: BUSINESS