Case Brief
What Happened
By an order dated August 10, 2021, RBI imposed a monetary penalty of ₹2.00 lakh on The Malkapur Urban Cooperative Bank Limited, Malkapur, Maharashtra. RBI said the bank had contravened / failed to comply with directions issued to Urban Co-operative Banks on Board of Directors and Know Your Customer (KYC). The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after an inspection report (based on the bank's position as on March 31, 2019) and after considering the bank's reply and oral submissions.