The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Modern Co-operative Bank Ltd, Chalisgaon, Maharashtra, for non-compliance with regulatory directions related to exposure norms and Know Your Customer (KYC) requirements.

The RBI found that the bank had breached the prescribed single borrower exposure limit and failed to upload customers' KYC records to the Central KYC Records Registry (CKYCR) within the stipulated timeline.

The central bank clarified that the penalty is based solely on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the bank with its customers.