Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Chhatarpur (Madhya Pradesh) for contravention/non-compliance with provisions of the Banking Regulation Act, 1949 and RBI directions on Know Your Customer (KYC). RBI said the bank had delayed submission of statutory/OSS returns to RBI and NABARD and had not carried out risk categorisation of its customers. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI considered the bank's replies and oral submissions and concluded the charges were substantiated.