Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
15 Sept 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Uma Co-operative Bank Ltd., Vadodara (Gujarat) under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had not adhered to Know Your Customer (KYC) norms. After considering the bank’s written reply and personal submissions, RBI concluded that the violations were substantiated and merited penalty.
Why RBI Acted
RBI 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 Uma Co-operative Bank Ltd., Vadodara (Gujarat) had failed to comply with Know Your Customer (KYC) norms. The bank had submitted a written reply to the show-cause notice and made personal submissions, but RBI found the violations substantiated and warranting penalty.
Operating Impact
The bank must absorb the financial penalty and continue operating, but the finding signals regulatory non-compliance in KYC controls. No direct operational restriction is stated in this release.
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