Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Aug 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty on Khargone Nagrik Sahakari Bank Maryadit, Khargone under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated directives/guidelines on implementation of KYC/AML norms, submission of proper compliance on time, and granting donations. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and imposed a penalty of ₹1.00 lakh.
Why RBI Acted
RBI 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) after finding that Khargone Nagrik Sahakari Bank Maryadit, Khargone had violated RBI directives/guidelines on implementation of Know Your Customer (KYC)/Anti Money Laundering (AML) norms, submission of proper compliance on time, and granting donations. The bank had been issued a show-cause notice and submitted a written reply, but RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty, but the release does not impose any new operating restriction. The action is primarily compliance-enforcement and serves as a regulatory warning for the bank to strengthen KYC/AML controls, timely compliance reporting, and adherence to RBI directions on donations.
Regulatory Basis
- Section 47A (1)(b)
- Section 46(4) of 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