Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Jan 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Vyavasayik Sahakari Bank Maryadit, Raipur by order dated January 04, 2021. RBI said the penalty was for non-compliance with its directions on opening of On-site ATM and Know Your Customer (KYC), based on inspection findings and after considering the bank's reply to the show-cause notice. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after inspection found that the bank had not complied with RBI directions relating to opening of On-site ATM and Know Your Customer (KYC). The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after the bank's reply to the show-cause notice was considered and the contraventions were held substantiated.
Operating Impact
The bank must absorb the monetary penalty, but the release does not describe any additional restriction on operations. The finding signals compliance lapses in onboarding/KYC-related controls and ATM-opening directions, but no direct customer-facing operational curtailment is imposed in this release.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 4 Jan 2021
- Effective From
- 4 Jan 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank