Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
25 Aug 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Latur Urban Co-operative Bank Ltd., Latur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed a show-cause notice, the bank’s written reply, and RBI’s conclusion that violations of Know Your Customer norms and RBI instructions were substantiated.
Why RBI Acted
RBI imposed a monetary penalty after issuing a show-cause notice and considering the bank’s written reply. The violations were found to be substantiated and were penalized under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Operating Impact
The bank must absorb the monetary penalty; the release does not mention any operational restriction or remedial deadline. The action is a compliance penalty for past KYC/instruction breaches and has no stated direct effect on customers beyond the regulatory sanction.
Regulatory Basis
- Section 47A (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