Case Brief
What Happened
RBI imposed a monetary penalty of ₹50,000 on Mangaldai Nagar Samabai Bank Limited, Mangaldai (Assam) by order dated July 28, 2022. The bank was penalized for non-compliance with the RBI’s Know Your Customer (KYC) Directions, 2016, after a scrutiny related to exchange of Specified Bank Notes found deficiencies in regulatory compliance. RBI issued a show-cause notice, considered the bank’s reply and additional submissions, and then concluded that the violation warranted a penalty under the Banking Regulation Act, 1949 (as applicable to co-operative societies).