Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Moirang Primary Co-operative Bank Ltd., Moirang, by order dated July 28, 2022. RBI said the bank had not complied with its Know Your Customer (KYC) Directions, 2016. The action followed a scrutiny of the bank in connection with exchange of Specified Bank Notes, which revealed the non-compliance. After issuing a show-cause notice and considering the bank’s reply and additional submissions, RBI concluded that the charges warranted the penalty under the Banking Regulation Act, 1949.