Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Shivam Sahakari Bank Limited, Kolhapur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its instructions/guidelines relating to Area of Operation and Know Your Customer (KYC)/Anti-Money Laundering (AML). After issuing a show cause notice and considering the bank's written and oral submissions, RBI concluded that the violations were substantiated and merited penalty.