Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Dec 2021
Case Brief
By an order dated December 15, 2021, RBI imposed a penalty of Rs 1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Jabalpur (M.P.) under the Banking Regulation Act, 1949. The action followed inspection findings that the bank had delayed statutory/OSS returns to RBI and NABARD and had no system to generate alerts and monitor suspicious transactions, violating NABARD directions on submission of returns and RBI's KYC directions. After the bank's replies and personal hearing, RBI concluded the contraventions were substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The bank was found to have delayed submission of statutory/OSS returns to RBI and NABARD, and to have had no system to generate alerts and monitor suspicious transactions, constituting non-compliance with directions issued by NABARD on submission of returns and RBI directions on Know Your Customer (KYC).
Operating Impact
The bank must absorb the monetary penalty and continue to comply with RBI/NABARD reporting and KYC-related requirements. The release does not impose an operating ban, but it signals continued supervisory scrutiny over the bank's compliance systems.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 15 Dec 2021
- Effective From
- 15 Dec 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank