Case Brief
What Happened
By an order dated May 29, 2023, RBI imposed a monetary penalty of ₹1.00 lakh on Shri Laxmi Sahakari Bank Ltd., Mhaisal, Maharashtra. The penalty was for non-compliance with RBI's KYC directions, specifically the bank's failure to put in place a system for periodic review of risk categorisation of accounts. RBI said the action was based on deficiencies in regulatory compliance and was imposed after a statutory inspection, issuance of a show-cause notice, and consideration of the bank's reply under the Banking Regulation Act, 1949.