RBI penalises two Gujarat Coop banks

The Reserve Bank of India (RBI) has penalised two Gujarat-based cooperative banks for violation of instructions on know your customers (KYC) norms and customer identification norms.

Vadodara-based Baroda City Cooperative Bank is slammed with a monetary penalty of Rs 1 lakh for violation of customer identification norms. "RBI has imposed a monetary penalty of Rs 1 lakh on the Baroda City Cooperative Bank... For non-adherence to Know Your Customers (KYC) norms and incorrect compliance certificate furnished for the earlier inspection report," the apex bank said in a statement. RBI also imposed a monetary penalty of Rs 5 lakh on Shreenath Co-operative Bank Ltd, Ahmedabad for violation of instructions on know your customers (KYC) norms and anti money laundering (AML) guidelines.