Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Suvikas Co-operative Bank Ltd., Ahmedabad, Gujarat, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI stated that the bank had violated instructions on Know Your Customer (KYC). After issuing a show-cause notice and considering the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and that penalty was warranted.