Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Jul 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Moirang Primary Co-operative Bank Ltd., Moirang, by order dated July 28, 2022. RBI said the bank had not complied with its Know Your Customer (KYC) Directions, 2016. The action followed a scrutiny of the bank in connection with exchange of Specified Bank Notes, which revealed the non-compliance. After issuing a show-cause notice and considering the bank’s reply and additional submissions, RBI concluded that the charges warranted the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a penalty under Section 47-A(1)(c) read with Section 46(4) and Section 56 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) because the bank failed to adhere to the RBI’s KYC Directions, 2016. The release says scrutiny of the bank in the matter of exchange of Specified Bank Notes revealed non-compliance with the directions, and RBI, after considering the bank’s reply and additional submissions, concluded the charges warranted a monetary penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any suspension, restriction, or withdrawal of business rights. There is no stated direct operational cap, but the finding signals continued regulatory scrutiny and the need to strengthen KYC compliance controls.
Regulatory Basis
- Section 47-A (1) (c) read with Section 46 (4) and Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 28 Jul 2022
- Effective From
- 28 Jul 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank