Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 Nov 2013
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Adarh Urban Co-operative Bank Limited, Sirohi under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated Know Your Customer (KYC) norms and Anti Money Laundering (AML) directives. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and warranted penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding that the bank had violated Know Your Customer (KYC) norms and Anti Money Laundering (AML) directives issued by RBI. The bank had submitted a written reply to a show-cause notice, but RBI found the violation substantiated and deserving of penalty.
Operating Impact
The bank must absorb the monetary penalty and remain compliant with RBI's KYC/AML requirements. The order does not indicate a business restriction, but it signals regulatory scrutiny for future compliance.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank