The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh (Rupees One Lakh only) on The Karnataka Co-operative Bank Limited, Muddebihal, Karnataka for non-compliance with certain directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs and Know Your Customer (KYC).
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| RBI Imposes Rs 1 lakh Penalty on Karnataka Co-operative Bank |
RBI Imposes ₹1 lakh Penalty on Karnataka Co-operative Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Karnataka Co-operative Bank Limited, Muddebihal, Karnataka for non-compliance with certain directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs and Know Your Customer (KYC).
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Hyderabad District Co-operative Central Bank Limited Telangana.
RBI Imposes Penalty on Karnataka Co-operative Bank: Background
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The Karnataka Co-operative Bank had breached the prudential inter-bank (gross) and counterparty exposure limits.
- The Karnataka Co-operative Bank had failed to upload the KYC records of customers onto the Central KYC Records Registry within the prescribed timeline.
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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
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