look news india
RBI action: The Reserve Bank of India takes strict action against banks in case of violation of rules. RBI has imposed a monetary penalty on Jai Bhavani Cooperative Bank Limited, Pune, Maharashtra. This bank is accused of not following the guidelines related to KYC and accounts. Therefore the central bank has imposed a fine of Rs 1.5 lakh.
RBI has taken this action under Sections 47A (1)(C), 46(4)(I) and 56 of the Banking Regulation Act 1949. Let us tell you that a statutory inspection was conducted by the Reserve Bank regarding the financial position of the bank till 31 March 2023. During this period, non-compliance of instructions came to light. After this, RBI had issued a notice to the bank asking “why penalty should not be imposed on them for failing to comply with the said instructions”. After considering the bank's response to the notice, the central bank decided to uphold the charges and impose monetary penalty.
The bank violated these rules (RBI monetary penalty)
The Bank failed to transfer the eligible and undisclosed deposits to the Depositor Education and Awareness Fund within the prescribed period. It was also unable to periodically review the risk classification of accounts. The bank also failed to conduct an annual review of its inoperative accounts.
Will customers be affected?
This action of RBI will not have any impact on the transactions or agreements between the customers and the bank. RBI itself has confirmed this. Further, it will have no impact on any other action initiated against the bank by the RBI.
