Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
16 Dec 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Jila Sahakari Kendriya Bank Maryadit, Rajgarh (M.P.) by order dated December 15, 2021. RBI said the bank had contravened its Know Your Customer (KYC) directions, with the inspection report noting that the bank had no system to monitor suspicious transactions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s replies and oral submissions.
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 inspection report (financial position as on March 31, 2019) found that the bank had no system to monitor suspicious transactions, amounting to contravention/non-compliance with RBI’s Know Your Customer (KYC) directions.
Operating Impact
The bank must absorb the penalty and tighten its KYC/AML controls, especially suspicious transaction monitoring. There is no stated restriction on operations or customer services, but the compliance lapse may prompt closer regulatory scrutiny.
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 50,000
- Order Date
- 15 Dec 2021
- Effective From
- 15 Dec 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank