Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Siwan Central Co-operative Bank Ltd., Bihar. The penalty was levied under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after RBI found that the bank had violated Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines. RBI had issued a show cause notice, and after reviewing the bank's written reply and personal submissions, concluded that the contraventions were substantiated and merited penalty.