Case Brief
What Happened
RBI imposed a monetary penalty on Bombay Mercantile Co-operative Bank Ltd., Mumbai under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was levied because the bank violated RBI's Know Your Customer/Anti-Money Laundering directives. RBI had issued a show cause notice, considered the bank's written and oral submissions, and concluded that the violations were substantiated and warranted penalty.