Nagar Sahkari Bank Ltd., Gorakhpur, Uttar Pradesh - Penalised
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2,00,000 on Nagar Sahkari Bank Ltd., Gorakhpur, Uttar Pradesh under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed a show-cause notice and the bank's written reply; RBI concluded that the KYC norm violations were substantiated.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after issuing a show-cause notice and considering the bank's written reply. The violations were found substantiated and warranted penalty for non-compliance with KYC norms.
Severity Assessment
The action is a monetary penalty of Rs 2 lakh, which falls within the lowest monetary band (<= Rs 5 lakh).
The bank must absorb the financial penalty and continue operating subject to compliance expectations. The release does not describe any operational restriction, but it reinforces RBI scrutiny over KYC compliance.
Published as Nagar Sahkari Bank Ltd., Gorakhpur, Uttar Pradesh
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