Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Feb 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Junagadh Commercial Co-operative Bank Ltd., Junagadh under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had violated Know Your Customer (KYC) norms and Anti-Money Laundering (AML) guidelines. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and warranted 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) after concluding that the bank had violated Know Your Customer (KYC) norms and Anti-Money Laundering (AML) guidelines. RBI issued a show-cause notice, considered the bank's written reply, and found the violations substantiated.
Operating Impact
The bank must bear the monetary penalty but the release does not indicate any additional business restriction or ongoing operational curtailment. The action is retrospective, with no specific forward-looking restriction described beyond the penalty itself.
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