Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Muslim Co-operative Bank Limited, Pune, Maharashtra. The action was taken for contravention of RBI’s directions on Know Your Customer (KYC) after inspection found that the bank had not done periodic KYC updation of accounts. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the non-compliance was substantiated. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.