Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Baroda City Co-operative Bank Ltd., Vadodara under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had not adhered to KYC norms and had furnished an incorrect compliance certificate for the earlier inspection report. After considering the bank's written reply and submissions at the personal hearing, RBI concluded that the violation was substantiated and that penalty was warranted.