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 Rs 5.00 lakh on The Washim Urban Cooperative Bank Ltd., Washim (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 other RBI instructions. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and merited the penalty.
Why RBI Acted
RBI 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 bank had violated KYC norms and RBI instructions. The bank had been issued a show-cause notice and submitted a written reply, but RBI found the violations substantiated and warranting penalty.
Operating Impact
The bank must absorb the monetary penalty; no operational restriction is described in the release. The action signals compliance lapses in KYC/AML-related controls and may require the bank to strengthen customer due diligence and adherence to RBI instructions going forward.
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