Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
23 May 2019
Case Brief
The Reserve Bank of India levied a monetary penalty of ₹50,000 on United India Co-operative Bank Ltd., Nagina, Uttar Pradesh, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was imposed for violation of RBI instructions/guidelines on Know Your Customer and for submission of compliance to the RBI Inspection Report. RBI had issued a show-cause notice, reviewed the bank’s written reply, and held that the violations were substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated RBI instructions/guidelines on KYC and on submission of compliance to the RBI Inspection Report. RBI had issued a show-cause notice, considered the bank’s written reply, and concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty and remain compliant with RBI instructions on KYC and inspection-report compliance going forward. The action does not indicate a restriction on operations, but it signals regulatory scrutiny over customer due diligence and supervisory reporting obligations.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank