Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
28 Jul 2022
Case Brief
RBI imposed a monetary penalty of ₹50,000 on Mangaldai Nagar Samabai Bank Limited, Mangaldai (Assam) by order dated July 28, 2022. The bank was penalized for non-compliance with the RBI’s Know Your Customer (KYC) Directions, 2016, after a scrutiny related to exchange of Specified Bank Notes found deficiencies in regulatory compliance. RBI issued a show-cause notice, considered the bank’s reply and additional submissions, and then concluded that the violation warranted a penalty under the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Why RBI Acted
RBI imposed a monetary penalty of ₹50,000 on Mangaldai Nagar Samabai Bank Limited, Mangaldai for failure to comply with the Know Your Customer (KYC) Directions, 2016 issued by RBI. The scrutiny of the bank in the matter of exchange of Specified Bank Notes revealed non-compliance with the RBI directions. After a show-cause notice, considering the bank’s reply and additional submissions, RBI concluded that the charges warranted penalty under Section 47-A(1)(c) read with Section 46(4) and Section 56 of the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Operating Impact
The bank must absorb the penalty and continue complying with RBI’s KYC requirements. The order does not state any operational restriction or customer-facing prohibition, but it signals heightened regulatory scrutiny over compliance controls.
Regulatory Basis
- Section 47-A (1) (c) read with Section 46 (4) and Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 28 Jul 2022
- Effective From
- 28 Jul 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank