RBI imposes penalty on two cooperative banks of Chhattisgarh
Reserve Bank has imposed the penalty on two cooperative banks of Chhattisgarh under the Banking Regulation Act, 1949. The Zila Sahakari Kendriya Bank Maryadit, Raipur, and Raipur Urban Mercantile Cooperative Bank Limited are the two on which RBI imposed the penalty of five lakh rupees each.
The Zila Sahakari Kendriya Bank Maryadit was penalised for violation of the directives/guidelines of the Central Bank on 'Know Your Customer' norms. While the Raipur Urban Mercantile Cooperative Bank Ltd faced action for violation of the directives on prohibition of grant of loans and advances to own directors or their relatives or concerns in which they are interested. Earlier also RBI had issued a show-cause notice to both the banks. But after receiving their responses, it came to the conclusion that the violations were substantiated.
So let's discuss some questions related to this post:
1. Name the two cooperative bank on which RBI has imposed the penalty?
2. The Zila Sahakari Kendriya Bank Maryadit and Raipur Urban Mercantile Cooperative Bank Ltd are the cooperative banks of which state?