The Reserve Bank of India (RBl) has imposed a monetary penalty of Rs. 4.00 lakh (Rupees Four Lakh only) on Shree Chhani Nagrik Sahakari Bank Limited, Vadodara, Gujarat for non-compliance with certain directions issued by RBI on Know Your Customer (KYC), Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions, Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) and Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) – A Graded Approach.
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| RBI Imposes Rs 4 lakh Penalty on Shree Chhani Nagrik Sahakari Bank |
RBI Imposes ₹4 lakh Penalty on Shree Chhani Nagrik Sahakari Bank
The Reserve Bank of India (RBl) has imposed a monetary penalty of ₹4.00 lakh on Shree Chhani Nagrik Sahakari Bank Limited, Vadodara, Gujarat for non-compliance with certain directions issued by RBI on Know Your Customer (KYC), Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions, Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) and Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) – A Graded Approach.
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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 ₹1.00 lakh on District Central Co-operative Bank Limited Durg, Chhattisgarh.
RBI Imposes Penalty on Shree Chhani Nagrik Sahakari Bank: Background
The statutory inspection of the bank was conducted by the 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 bank had failed to carry out periodic review of risk categorisation of certain accounts at least once in six months.
- The bank had failed to provide customers with 24x7 access to report unauthorized electronic banking transactions through multiple channels.
- The bank had failed to implement certain cyber security controls prescribed by RBI under the Cyber Security Framework.
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.
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About Shree Chhani Nagrik Sahakari Bank
Under the leadership of Late Chhaganbhai Bhavanbhai Patel, under name of ‘Shree Chhani Nagrik Sahakari Bank Ltd.,’ and was issued a license by Reserve Bank of India Date on 26th November 1986.
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
Static Current Affairs related Shree Chhani Nagrik Sahakari Bank Bank for upcoming exams
- Formation: 26th November 1986
- Chairman: Satendrabhai G.Patel
- Vice-Chairman: Pankajbhai S Rana
- Managing Director: Vitthalbhai D.Patel
- Manager: Vinodbhai K.Patel
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