Case Brief
What Happened
RBI imposed a monetary penalty of Rs 2 lakh on Pune People’s Co-operative Bank Limited, Pune by order dated December 02, 2021. The penalty was based on contravention of and non-compliance with RBI directions on Know Your Customers, as revealed in the inspection report for the bank's financial position as on March 31, 2020. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then concluded that the charge was substantiated, invoking powers under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.