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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹10 lakh on The Tiruchengode Co-operative Urban Bank Ltd (No.8994), Tiruchengode, Tamil Nadu, for non-compliance with directions related to exposure norms and statutory restrictions for urban co-operative banks, as well as Know Your Customer (KYC) guidelines. The penalty has been imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
An inspection of the bank, based on its financial position as of March 31, 2020, revealed violations of exposure norms, statutory restrictions, and KYC guidelines. Following these findings, RBI issued a show-cause notice to the bank. After considering the bank’s written response and oral submissions during a personal hearing, RBI concluded that the non-compliance was substantiated and warranted the imposition of the monetary penalty.
[RBI]