Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 May 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on The Commercial Co-operative Bank Ltd., Jamnagar under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had not displayed its name properly in all stationery and advertisements, had made donations beyond the prescribed limit, and had not implemented KYC norms. After reviewing the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and merited the penalty.
Why RBI Acted
The Reserve Bank of India imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The violations found were: improper display of the bank's name in stationery and advertisements, donations made beyond the prescribed limit, and failure to implement Know Your Customer (KYC) norms. RBI considered the bank's reply and personal submissions but concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not impose a continuing operational restriction. The underlying compliance expectations remain relevant, especially for name disclosure, donation controls, and KYC compliance.
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 2.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank