New Delhi, March 17: Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5 lakhs on Transport Cooperative Bank Indore for violation of directives of Apex Bank.
The penalty has been imposed for violation of the "directives/guidelines of the Reserve Bank on loan exposure norms, KYC norms and compliance to RBI Inspection Report", the central bank said in a statement.
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 the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty, said RBI.
Transport Co-operative Bank Ltd. was established on 14 September, 1974. The Vision behind establishment of bank was to overcome the fund difficulties faced by truck operators & owners. Bank stood as a great foundation for those truck operators that have never visited the bank & were not familiar with savings & other services. Bank also provided easy finance schemes which helped the operators & owners to increase their productivity and business.