RBI imposes monetary penalty on The Vaijapur Merchants Co-operative Bank Limited, Vaijapur, Maharashtra

"On "28/10/2024", the "Reserve Bank of India" issued an update regarding "RBI imposes monetary penalty on The Vaijapur Merchants Co-operative Bank Limited, Vaijapur, Maharashtra".

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹7.50 lakh on The Vaijapur Merchants Co-operative Bank Limited for non-compliance with specific directions issued under the Supervisory Action Framework (SAF) and Know Your Customers (KYC) norms.

The bank was found to have made donations to certain entities, offered higher interest rates than State Bank of India, and failed to implement a robust software to detect suspicious transactions.