Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
6 Oct 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Pusad Urban Co-operative Bank Ltd., Pusad, District Yavatmal (Maharashtra) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated Know Your Customer norms and RBI instructions. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and that penalty was warranted.
Why RBI Acted
The Reserve Bank of India imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding that the Pusad Urban Co-operative Bank Ltd. had violated Know Your Customer norms and RBI instructions. The bank had received a show-cause notice and submitted a written reply, but RBI found the violations substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty and remain compliant with KYC and other RBI instructions going forward. The release does not describe any operational restriction, but it signals supervisory findings that may affect regulatory scrutiny of the bank.
Regulatory Basis
- Section 47A (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 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank