RBI imposes Monetary Penalty on Latur Urban Co-operative Bank Ltd., Latur
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Latur Urban Co-operative Bank Ltd., Latur 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 a show-cause notice, the bank’s written reply, and RBI’s conclusion that violations of Know Your Customer norms and RBI instructions were substantiated.
RBI imposed a monetary penalty after issuing a show-cause notice and considering the bank’s written reply. The violations were found to be substantiated and were penalized under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Severity Assessment
The action is a monetary penalty of ₹5 lakh, which falls in the lowest monetary band and there is no additional operational restriction.
The bank must absorb the monetary penalty; the release does not mention any operational restriction or remedial deadline. The action is a compliance penalty for past KYC/instruction breaches and has no stated direct effect on customers beyond the regulatory sanction.
Published as Latur Urban Co-operative Bank Ltd., Latur
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