One of the top urban cooperative banks Abhyudaya co-op bank based in Munbai is also not spared when it comes to RBI’s norms.
The Reserve Bank of India has imposed a monetary penalty on Abhyudaya Co-operative Bank last week. The bank was found to be flouting instructions and guidelines issued by the Reserve Bank of India.
The much-celebrated Chairman Mr Ghandat refused to talk on the matter when Indian Cooperative contacted him. One of the CGMs Mr Naik confirmed RBI’s penalty but wanted Managing Director Mr More to respond on the issue.
MD Mr More did not pick up repeated calls from the cooperative news portal.
The issue related to a special scrutiny conducted in the Vashi branch of the bank to check the operations in the account of M/s Speak Asia Online Private Limited, an online survey company. RBI’s enquiry revealed that the bank had violated KYC / AML guidelines.
The bank had also violated instructions by freezing the account and thus tipping off the customer. It had also closed the audit trail by closing the account.
It was also observed that the bank had not adhered to KYC / AML guidelines on an earlier occasion involving RTGS transactions with Union Bank of India, Zaveri Bazar Branch. Thus there was evidence of recurrence of non-compliance in implementation of KYC norms.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and classified as Major which warranted imposition of penalty.
http://www.thenews.coop/article/abhyudaya-co-op-bank-under-rbi-scanner
