Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
15 Apr 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Suvikas Co-operative Bank Ltd., Ahmedabad, Gujarat, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI stated that the bank had violated instructions on Know Your Customer (KYC). After issuing a show-cause notice and considering the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and that penalty was warranted.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The bank was issued a show-cause notice, submitted a written reply and personal submissions, but RBI concluded that the violations of KYC instructions were substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty, but the release does not describe any additional operational restriction. The action primarily has financial and compliance consequences for the co-operative bank.
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