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The Jind Central Co-operative Bank Ltd

Co-operative bankDumka, Jharkhand

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Monetary penalty

Monetary penalty · Fresh imposition

S2

Published by RBI

31 Mar 2015

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh each on 16 Central Co-operative Banks. The penalties were issued under Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after RBI found non-adherence to KYC norms and AML standards substantiated, despite the banks' replies and personal submissions.

Why RBI Acted

KYC / AML

RBI imposed a monetary penalty of Rs 5 lakh each on 16 Central Co-operative Banks under Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for non-adherence to Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards. The banks had received show-cause notices, submitted written replies and personal submissions, but RBI concluded the violations were substantiated and warranted penalties.

Operating Impact

Each of the 16 co-operative banks must absorb the monetary penalty; the order does not describe any additional business restriction or licence action. The immediate impact is financial and compliance-related, with RBI signaling deficiencies in KYC/AML controls.

Regulatory Basis

  • Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)

Action Facts

Primary Impact
Monetary penalty
Entities Affected
16
Entity Role
Bulk Member
Entity Type
Co-operative bank

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