Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Sept 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Guna, Madhya Pradesh, by order dated September 16, 2021. RBI said the bank had contravened or failed to comply with provisions of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, and RBI directions on Know Your Customer (KYC). The action followed an inspection based on the bank's financial position as of March 31, 2019, a show-cause notice, and RBI's conclusion that the non-compliance was substantiated under the Act and RBI directions.
Why RBI Acted
Based on the inspection report for the bank's financial position as on March 31, 2019, RBI found contravention of/non-compliance with provisions of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, and RBI directions issued on KYC. After issuing a show-cause notice and considering the bank's reply, RBI concluded the charges were substantiated and imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the monetary penalty, but the release does not impose any new operational restriction. The underlying compliance expectations on KYC and deposit fund-related provisions remain in force for ongoing regulatory oversight.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
- The Banking Regulation Act, 1949
- The Depositor Education and Awareness Fund Scheme, 2014
- directions issued by RBI on Know Your Customer (KYC)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 16 Sept 2021
- Effective From
- 16 Sept 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank