Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Mahila Vikas Co-operative Bank Ltd., Ahmedabad, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was levied for violations of the Banking Regulation Act and RBI directives/instructions, specifically non-adherence to KYC/AML guidelines. RBI issued a show-cause notice, reviewed the bank’s written reply, and concluded that the violations were substantiated.