Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Dec 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Janatha Seva Co-operative Bank Ltd., Bangalore, 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 its instructions on Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines. After a show-cause notice, the bank's written reply, and a personal hearing, RBI concluded the violation was substantiated and warranted the 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 Janatha Seva Co-operative Bank Ltd., Bangalore had violated RBI's Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. The bank had received a show cause notice, submitted a written reply, and was heard personally before the violation was found substantiated.
Operating Impact
The bank must absorb the financial penalty, but the release does not describe any additional operational restriction or license action. The adverse action is limited to enforcement for past KYC/AML non-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