RBI imposes monetary penalty on Gauhati Co-operative Urban Bank

MUMBAI: The Reserve Bank of India (RBI) on Thursday said it has imposed a monetary penalty on Guwahati-based Gauhati Co-operative Urban Bank Limited for non-compliance with KYC-related compliance.

RBI has imposed, by an order dated July 28, 2022, a monetary penalty of Rs 50,000 on the Gauhati Co-operative Urban Bank Limited, Guwahati (the bank), for non-compliance with Know Your Customer (KYC) directions, the central bank said in a statement.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47-A (1) (c), read with Section 46 (4) and Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), taking into account failure of the bank to adhere to the aforesaid directions issued by RBI, it said.

"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 RBI said. A scrutiny of the bank in the matter of exchange of Specified Bank Notes, revealed, inter alia, non-compliance with above-mentioned directions issued by the RBI.

In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for failure to comply with the directions issued by RBI. "After considering the bank's reply to the notice, and examination of additional submissions, RBI concluded that the aforesaid charges of non-compliance with RBI directions warranted imposition of monetary penalty," the RBI said.