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RBI penalises The Tiruchengode Co-operative Urban Bank for rule violations

The RBI has been tightening its grip on regulated entities, specifically cooperative banks, to ensure that appropriate corporate governance practices are followed.

June 27, 2022 / 05:33 PM IST

The Reserve Bank of India (RBI), on June 27, imposed a monetary penalty of Rs 10 lakh on Tamil Nadu-based The Tiruchengode Cooperative Urban Bank for non-compliance of certain norms.

An inspection report of the bank based on its financial position as of March 31, 2020, revealed that the lender inter alia, did not comply with directions issued on exposure norms and statutory or other restrictions pertaining to urban cooperative bank and Know Your Customer (KYC) guidelines, the RBI said in a release today.

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, the banking regulator said.

Also read: RBI penalises two co-operative banks for rule violations

The RBI has been tightening its grip on regulated entities, specifically cooperative banks, to ensure that appropriate corporate governance practices are followed.

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The banking regulator, on June 24, had imposed a monetary penalty of Rs 57.50 lakh on Indian Overseas Bank for failing to report certain instances of frauds involving ATM card cloning and skimming to RBI within three weeks from the date of detection.
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first published: Jun 27, 2022 05:33 pm
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