RBI Action: RBI took action against this bank, imposed heavy fine, reason known

RBI has taken action against another bank for violating the rules. Penalty has been imposed. Let us know why the central bank took this step and will this action also affect the customers?

RBI Action: The Reserve Bank of India (RBI) has taken action against Shri Ganesh Sahakari Bank Limited, Nashik, located in Maharashtra. A monetary penalty of Rs one lakh has been imposed. RBI has given this information through a notice on 7 April. Let us tell you that last week, a fine of Rs 36 lakh was imposed on Aryavart Bank located in Lucknow. At the same time, more than 30 banks have been affected in March.

This has been taken under various provisions of the Central Bank’s Banking Regulation Act 1949. The bank is accused of violating KYC and other banking rules. Actually, on March 31, 2024, RBI conducted an inspection regarding the financial position of the bank. During this it was found that the bank was not following many guidelines. After which a show cause notice was issued. Further investigation continued. Keeping in mind the bank’s reply and other presentations, imposing a monetary penalty was considered a better option.

3 allegations against the bank

The bank failed to transfer the eligible unclaimed amount to the Education and Awareness Fund within the stipulated time. Apart from this, it also failed to update the KYC of the customers within the stipulated period. It also did not review the risk classification of all accounts at least once in 6 months.

Customers need not worry

The Reserve Bank of India regulates all banks and NBFCs across the country. Many rules have been laid down for operation, and if violated, RBI takes action. Special investigations are also conducted. However, this action does not affect the customers. There will be no impact on the transactions or agreements between the bank and the customer. If you also have an account in this bank, then there is no need to worry. You will be able to avail all the facilities as before.

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