Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Karjan Nagarik Sahakari Bank Ltd., Karjan, District Vadodara (Gujarat). The action was taken under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for violation of RBI instructions on KYC norms. RBI said the violation was found in an inspection relating to the bank's financial position as on March 31, 2012, and was confirmed after considering the bank's written reply to the show-cause notice.