The Reserve Bank of India on Monday said that it has imposed a monetary penalty of Rupees two lakh on Pune People’s Co-operative Bank for violation of certain norms related to ‘Know Your Customers’.
This 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) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the rules, the central bank said in a press release.
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 added.
The inspection report of the bank based on its financial position as on March 31, 2020, revealed, non-compliance with directions issued by the RBI.
Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid directions as stated therein, the RBI said.
