Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Aug 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Becharaji Nagarik Sahakari Bank Limited, Becharaji, Dist. Mehsana, Gujarat, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated its instructions on Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. After issuing a show cause notice and considering the bank's reply and personal submissions, RBI held that the violations were substantiated and imposed 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 (AACS). The bank was found to have violated Reserve Bank of India instructions relating to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. RBI issued a show cause notice, considered the bank's written reply and personal submissions, and concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty and there is no further operational restriction described in the release. The action is adverse only in the form of the fine; depositors and counterparties are not described as facing any direct new restriction.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank