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RBI penalises CKP Co-op Bank in Mumbai

RBI penalised the bank for violation of the RBI’s guidelines

November 29, 2012 1:20 IST | India Infoline News Service
The Reserve Bank of India (RBI) has imposed a penalty of Rs. 5 lakh on CKP Co-operative Bank Ltd, Mumbai for violation of the RBI’s guidelines on opening of on-site ATMs, extending finance to borrowers outside area of operations, exceeding exposure to housing and real estate, single party exposure limit, loans to directors, issuing bank guarantee to an entity not banking with them, non-filing of Suspicious Transaction Report (STR) report to Financial Intelligence Unit-India (FIU-IND), exceeding individual limit of unsecured advances, sanctioning overdraft against third party FDs to one of its directors.

The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. On careful examination of the reply and the action taken by the bank in this regard, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of the penalty and accordingly, the penalty was imposed on the bank.

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