Now, these two cooperative banks face penalty by RBI

In a major development, the RBI has confirmed that it has imposed a total penalty of Rs 7 lakh on two co-operative banks, including Rs 5 lakh on Vyavasayik Sahakari Bank Maryadit, for violation of KYC and other norms. A penalty of Rs 2 lakh has been imposed on Maharashtra Nagari Sahakari Bank Maryadit, Latur.

In a statement, the Reserve Bank of India (RBI) said a penalty of Rs 5 lakh has been imposed on Vyavasayik Sahakari Bank Maryadit, Raipur for non-compliance with directions issued by RBI on opening of on-site ATM and Know Your Customer (KYC).

Giving details, RBI said the inspection report of the bank with reference to its financial position as on March 31, 2018 revealed, inter alia, non-compliance with directions on opening of on-site ATM and KYC.

In another release, RBI said the penalty on Maharashtra Nagari Sahakari Bank Maryadit has been imposed for non-compliance with directions on KYC.

The RBI further said the action against the banks is based on deficiencies in regulatory compliance, and not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers.

Recently, in the interest of consumers, the Reserve Bank of India (RBI) had cautioned against unauthorised digital lending platforms/mobile apps. But, following what RBI has said you may save money from the fraudsters. RBI said that there have been reports about individuals/small businesses falling prey to the growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner.

RBI added that these reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.

Further RBI says, "Legitimate public lending activities can be undertaken by Banks, Non-Banking Financial Companies (NBFCs) registered with RBI and other entities who are regulated by the State Governments under statutory provisions, such as the money lending acts of the concerned states."

RBI said, "Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps."

"Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorised Apps and should report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use Sachet portal (https://sachet.rbi.org.in) to file an on-line complaint," RBI said.

Reserve Bank has also mandated that digital lending platforms which are used on behalf of Banks and NBFCs should disclose name of the Bank(s) or NBFC(s) upfront to the customers.

The names and addresses of the NBFCs registered with the Reserve Bank can be accessed here and the portal for filing complaints against the entities regulated by the RBI can be accessed through https://cms.rbi.org.in.