RBI Imposes Rs1 Lakh Penalty on Shri Ganesh Sahakari Bank
Moneylife Digital Team 08 April 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs1 lakh on Nashik, Maharashtra-based Shri Ganesh Sahakari Bank Ltd for contravention of the provisions of Section 26A of the Banking Regulation Act (BR Act) and non-compliance with directions issued on know-your-customer (KYC).
 
The statutory inspection of Shri Ganesh Sahakari Bank revealed several compliance lapses. The lender failed to transfer eligible unclaimed amounts to the depositor education and awareness fund (DEA Fund) within the prescribed timeframe. Additionally, the Bank did not carry out periodic KYC updates for its customers as required, nor did it review the risk categorisation of all accounts at least once every six months, as mandated.
 
After considering the lender’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against Shri Ganesh Sahakari Bank are sustained, warranting imposition of monetary penalty.
 
However, the banking regulator clarified that its action against Shri Ganesh Sahakari Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
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