Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
21 Nov 2024
Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on The Amod Nagric Co-operative Bank Ltd., Amod, Dist. Bharuch, Gujarat, after a statutory inspection and subsequent supervisory proceedings. The bank was found non-compliant with RBI directions on loans and advances to directors, their relatives and related concerns, as well as KYC norms, including sanctioning loans involving a director’s relative and failing to upload certain customers’ KYC records to the Central KYC Records Registry within the required timeline. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
After a statutory inspection and supervisory findings, RBI issued a show-cause notice and, considering the bank’s reply and oral submissions, held that charges were sustained. The bank was found to have sanctioned loans to a relative of a director, including a case where the relative stood as guarantor, and to have failed to upload KYC records of certain customer accounts to the Central KYC Records Registry within the prescribed time. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the ₹1 lakh penalty; the order does not itself impose a business restriction or suspension. RBI also notes the penalty is without prejudice to any other action that may be initiated separately, so further supervisory or enforcement action remains possible.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 13 Nov 2024
- Effective From
- 13 Nov 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank