RBI imposes Rs 5-lakh penalty on two banks

Tags: News
Reserve Bank today imposed penalty of Rs 5 lakh each on Chanasma Nagrik Sahakari Bank and Bijnor Urban Co-operative Bank for violation of various norms, including Know Your Customer (KYC).

RBI said Bijnor Urban Co-operative Bank, Bijnor, Uttar Pradesh violated norms by "sanctioning loans and advances to Directors and their relatives" in addition to KYC rules.

The Chanasma Nagrik Sahakari Bank, Chanasma, District Patan (Gujarat) was found violating KYC and Anti Money Laundering (AML) guidelines.

In the case of Chanasma bank, the RBI had issued a Show Cause Notice to the bank based on the findings of inspection of the bank. In response the bank submitted a written reply and made personal submission to the Regional Director, RBI, Ahmedabad.

In the other case as well, show cause notice was sent and the bank had replied.

However, in both the cases the RBI concluded that the violations were substantiated and warranted imposition of the penalty.


  • Monetary policy review needs to look beyond key policy rate

    After changes in the interest rate cycle direction, expectation of some action on rates is high before every monetary policy review of the Reserve Ban


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Arun Kumar Jain

India in a new age work order

There are three broad categories of people in the world ...

Rajgopal Nidamboor

The balancing act of nature

It’s a fact of modern life that you and I ...

Dharmendra Khandal

For a lark, let's do something serious finally

It’s a sight to behold. As you drive through a ...


William D. Green

Chairman & CEO, Accenture