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.


  • With IT firms pursuing independent business models, Infosys is no longer a bellwether

    The earnings season kicked off on Monday with technology major Infosys announcing its second quarter results that were more or less on expected lines


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


Taslima Nasreen

Saudi Arabia will never be shamed

The health minister of Saudi Arabia Khalid Al-Falih has purportedlysaid ...

Kuruvilla Pandikattu

Our mood effects our walking style

Our mood can affect how we walk. We walk lazy ...

Dharmendra Khandal

Use technology wisely to save earth's treasures

Wildlife biologists are certainly getting inspired by our armed forces’ ...


William D. Green

Chairman & CEO, Accenture