Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Sutex Co-operative Bank Ltd., Surat (Gujarat), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed an inspection that identified violations of RBI directives/guidelines on Know Your Customer (KYC) and Anti Money Laundering (AML). RBI issued a show-cause notice, considered the bank's written reply and personal submissions, and concluded that the violations were substantiated.