The Hyderabad District Co-operative Central Bank Ltd., Andhra Pradesh – Penalised
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Hyderabad District Co-operative Central Bank Ltd., Andhra Pradesh under the Banking Regulation Act, 1949 (as applicable to co-operative societies). The RBI said the bank had not adhered to KYC norms and AML guidelines. After issuing a show-cause notice and considering the bank's reply and personal submissions, the RBI concluded that the violation was substantiated and warranted penal action.
The Reserve Bank of India imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding that the bank had violated Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. The RBI issued a show-cause notice, considered the bank's written reply and personal submissions, and found the violation substantiated.
Severity Assessment
A Rs 5 lakh penalty falls in the >Rs 2 lakh and <=Rs 10 lakh monetary band, so severity is 2.
The bank must absorb the financial penalty and address compliance gaps in customer due diligence and anti-money-laundering controls. The order does not indicate an operational restriction, but it signals regulatory scrutiny over the bank's KYC/AML compliance.
Published as The Hyderabad District Co-operative Central Bank Ltd.
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