Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Nov 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Baroda City Co-operative Bank Ltd., Vadodara 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 had not adhered to KYC norms and had furnished an incorrect compliance certificate for the earlier inspection report. After considering the bank's written reply and submissions at the personal hearing, RBI concluded that the violation was substantiated and that penalty was warranted.
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). The bank was penalised for non-adherence to Know Your Customer (KYC) norms and for submitting an incorrect compliance certificate in relation to the earlier inspection report. RBI considered the bank's written reply and submissions made during personal hearing, but found the violation substantiated.
Operating Impact
The bank must absorb the monetary penalty; no operational restriction is described in this release. The findings relate to KYC compliance and the accuracy of compliance reporting, which may affect regulatory scrutiny going forward.
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