Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 Apr 2016
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Dholpur Urban Co-operative Bank Limited, Dholpur, after finding that violations of RBI guidelines/directives on Know Your Customer (KYC) and Anti-Money Laundering (AML) were substantiated. The penalty was imposed under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), following a show-cause notice, the bank's written reply, and a personal hearing.
Why RBI Acted
RBI issued a show cause notice to Dholpur Urban Co-operative Bank Limited, Dholpur, and after considering the bank's written reply and personal hearing, concluded that violations of the guidelines/directives on KYC/AML were substantiated. It imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Operating Impact
The bank must bear the monetary penalty and the adverse finding on KYC/AML compliance remains on record. The release does not describe any operational restriction, so customer services are not stated to be curtailed; however, it signals regulatory scrutiny on the bank's AML/KYC controls.
Regulatory Basis
- Section 47A (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 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank