Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 10,000 on Jila Sahakari Kendriya Bank Maryadit, Gwalior (M.P.) for contravention of RBI's KYC directions. RBI said an inspection report based on the bank's financial position as on March 31, 2019 found that the bank had no mechanism to identify suspicious transactions. After issuing a show-cause notice and considering the bank's replies and oral submissions, RBI concluded the violation was substantiated and levied the penalty under the Banking Regulation Act, 1949.