Case Brief
What Happened
The Reserve Bank of India levied a monetary penalty of ₹50,000 on United India Co-operative Bank Ltd., Nagina, 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 penalty was imposed for violation of RBI instructions/guidelines on Know Your Customer and for submission of compliance to the RBI Inspection Report. RBI had issued a show-cause notice, reviewed the bank’s written reply, and held that the violations were substantiated.