Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
23 Jul 2012
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on Sterling Urban Co-operative Bank Ltd., Jaipur under Section 47(A)(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 instructions relating to Know Your Customer (KYC) norms and Anti Money Laundering (AML) directives. After issuing a show-cause notice and considering the bank’s written reply and personal submissions, RBI concluded that the violation was substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47(A)(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 instructions on Know Your Customer (KYC) norms and Anti Money Laundering (AML) directives. The bank had received a show-cause notice, submitted a written reply, and made personal submissions, but RBI found the violation substantiated.
Operating Impact
The bank must bear the monetary penalty; the order does not describe any operational restriction or broader license impact. The forward-looking consequence is limited to the financial penalty and the compliance signal that RBI expects adherence to KYC/AML requirements.
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 2.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank