Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Oct 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Jain Sahakari Bank Ltd., Mumbai, Maharashtra. The action was taken under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after RBI concluded that the bank had violated its directives/guidelines on Know Your Customer (KYC) norms and anti-money laundering (AML) guidelines. RBI had issued a show cause notice, considered the bank's written reply and submissions made during personal hearing, and then found the violation substantiated.
Why RBI Acted
RBI imposed a monetary penalty of Rs 1.00 lakh on The Jain Sahakari Bank Ltd., Mumbai, Maharashtra 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 found to have violated RBI directives/guidelines on Know Your Customer (KYC) norms and anti-money laundering (AML) guidelines. RBI considered the bank's reply to the show-cause notice and oral submissions, concluded the violation was substantiated, and imposed the penalty.
Operating Impact
The bank must absorb the financial penalty; no additional operational restriction is stated in the release. The action is a compliance signal for the bank to strengthen KYC/AML controls and related processes 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