RBI imposes monetary penalty on Nagarik Sahakari Bank Limited, Bhiwandi, Thane, Maharashtra

Case Brief

RBI, by order dated August 04, 2021, imposed a monetary penalty of Rs 7 lakh on Nagarik Sahakari Bank Limited, Bhiwandi, Thane, Maharashtra. The bank was found to have violated RBI directions on Exposure Norms and Statutory/Other Restrictions for UCBs and KYC Directions, including breaches of prudential inter-bank gross exposure and single counterparty exposure limits, failure to allot UCICs to all customers, absence of periodic risk categorization review, and lack of a system to track KYC-updation due accounts. RBI stated the action was taken under the Banking Regulation Act, 1949, and that it was based on deficiencies in regulatory compliance.