Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
15 Dec 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Nagrik Sahkari Bank Ltd., Raipur 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 penalty was for violation of KYC/AML norms and guidelines issued by the Reserve Bank. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violation was substantiated and deserved penalty.
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 Nagrik Sahkari Bank Ltd., Raipur had violated KYC/AML norms and guidelines issued by the Reserve Bank of India. The bank had submitted a written reply to the show-cause notice, but RBI found the violation substantiated and warranting penalty.
Operating Impact
The bank must absorb the monetary penalty, and the order signals regulatory non-compliance on KYC/AML controls. No operational restriction is stated, but the bank is expected to correct the underlying compliance lapse to avoid further supervisory action.
Regulatory Basis
- Section 47 A (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 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank