Case Brief
What Happened
On December 12, 2017, the Reserve Bank of India imposed a monetary penalty of ₹50 million on Syndicate Bank. RBI said the bank had not complied with its directions and guidelines relating to cheque purchase/discounting, bill discounting, and KYC/AML norms. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after scrutiny of certain branches, a show-cause notice, and consideration of the bank's reply and oral submissions. RBI clarified that the action was based on regulatory deficiencies and not on the validity of any transaction or agreement with customers.