RBI imposes monetary penalty on Renuka Nagarik Sahakari Bank Maryadit, Ambikapur (Chhattisgarh)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Renuka Nagarik Sahakari Bank Maryadit, Ambikapur (Chhattisgarh) for contravention of RBI directions applicable to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC). RBI said the bank failed to adhere to prudential inter-bank (gross) exposure limits, did not conduct periodic review of customer risk categorization, and lacked a robust system to detect suspicious transactions. After a show-cause process and hearing, RBI found the violations substantiated and imposed the penalty under the Banking Regulation Act, 1949.