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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.00 lakh on Shri Ganesh Sahakari Bank Ltd., Navi Sangvi, Pune, for non-compliance with directions on Know Your Customer (KYC) norms and Maintenance of Deposit Accounts. The penalty was levied under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949.
The action follows a statutory inspection of the bank as of March 31, 2021, which revealed that the bank lacked a system for identification and reporting of suspicious transactions. Additionally, the bank was found levying a fixed penalty for shortfall in minimum balance in savings accounts instead of proportionate charges based on the extent of shortfall.
RBI had issued a show-cause notice to the bank, and after examining its reply, concluded that the non-compliance was substantiated, warranting the imposition of the penalty.
This measure is intended to ensure strict adherence to regulatory requirements and is not a
judgment on the validity of any transaction or agreement entered into by the bank with its customers.
[RBI]