The Reserve Bank of India on Wednesday imposed a total of Rs 8 lakh on three Maharashtra-based credit unions for failing to comply with regulations. A fine of Rs 4 lakh was imposed on Excellent Cooperative Bank, Mumbai, and Janseva Sahakari of 2 lakh each. Bank Limited, Pune and The Ajara Urban Cooperative Bank, Ajara (Kolhapur). Excellent Cooperative Bank was sanctioned for violating RBI’s instructions on “deposit account management” and “Know Your Customer (KYC)”.
The financial institution Janseva Sahakari has been fined for violating the route published by KYC.
The Central Institute mentioned that the sanction was imposed on the Ajara City Cooperative Financial Institution for violating the “deposit account maintenance” route.
The RBI mentioned that the sanction imposed on the three lenders was primarily due to a lack of compliance and is not intended to determine the validity of any transaction or agreement they have entered into with their prospects.