Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
9 Aug 2012
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana (Gujarat) 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 bank violated its directives/guidelines on Know Your Customer (KYC) and Anti Money Laundering (AML). After issuing a show-cause notice and considering the bank's reply and personal submissions, RBI concluded that the violation was substantiated and warranted a 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 the bank had violated RBI directives/guidelines on KYC and AML. The bank replied to a show-cause notice and made personal submissions, but RBI found the violation substantiated and deserving of penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any additional operating restriction or deadline. The enforcement action is a compliance signal around KYC/AML controls and may affect supervisory scrutiny going forward.
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 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank