Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Jul 2017
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3,00,000 on Laxmi Mahila Nagrik Sahkari Bank Maryadit, Raipur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violation of RBI guidelines on Know Your Customer (KYC). RBI had issued a show cause notice, considered the bank’s written reply, and concluded that the violation was substantiated.
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 concluding that the bank had violated RBI-issued KYC guidelines. The bank had received a show cause notice and submitted a written reply, but RBI found the contravention substantiated and warranting penalty.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with RBI KYC requirements. There is no indication in this release of any operational restriction beyond the fine, but the bank remains under regulatory scrutiny.
Regulatory Basis
- Section 47A(1)(b)
- Section 46(4) of the Banking Regulation Act 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank