Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Jan 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty on Maharashtra Nagari Sahakari Bank Maryadit, Latur by order dated January 04, 2021. The penalty was for non-compliance with RBI directions on Know Your Customer (KYC), based on inspection findings for the bank's financial position as on March 31, 2019. RBI said the bank failed to adhere to the relevant directions, issued a show-cause notice, and after examining the reply, concluded that the contravention was substantiated and warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after an inspection reported non-compliance with its KYC directions. The bank was issued a show-cause notice, and after considering its reply, RBI concluded the charge was substantiated and warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the ₹2 lakh penalty; the release does not describe any operational restriction or suspension. The forward-looking implication is regulatory reprimand for past KYC compliance failures, with no stated additional action against depositors or customers.
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 2.00 L
- Order Date
- 4 Jan 2021
- Effective From
- 4 Jan 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank