Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
10 Dec 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Vyavsayik Sahkari Bank Ltd, Raipur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI had issued a show-cause notice, considered the bank’s written reply, and concluded that the violation of KYC/AML norms and guidelines was substantiated and warranted 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 issuing a show-cause notice and considering the bank’s written reply. The bank’s violation of RBI KYC/AML norms and guidelines was found to be substantiated.
Operating Impact
The bank must absorb the monetary penalty and address compliance gaps in its KYC/AML controls. The action does not describe any operational restriction, but it signals RBI scrutiny of the bank’s anti-money laundering and customer due diligence practices.
Regulatory Basis
- Section 47 A (1)(b)
- Section 46 (4) of the Banking Regulation Act 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank