Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on National Central Co-operative Bank Ltd., Bettiah, Bihar under Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank failed to adhere to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines. After a show-cause process and consideration of the bank's reply and personal submissions, RBI concluded that the violation was substantiated and warranted the penalty.