The Bank of Rajasthan Ltd. – Penalised

Case Brief

The Reserve Bank of India penalised The Bank of Rajasthan Ltd. with a monetary penalty of Rs. 25 lakh under Section 47A(1)(b) of the Banking Regulation Act, 1949. The penalty was imposed after RBI found that the bank had violated directions issued under Section 35A regarding acquisition of immovable properties, deleted records from its IT systems, failed to adhere to KYC/AML guidelines in opening and conducting certain accounts, committed irregularities in the conduct of accounts of a corporate group, and did not provide certain documents sought by RBI while misrepresenting that those documents were unavailable. RBI had issued a show-cause notice, considered the bank’s written reply, and concluded that the violations were substantiated and warranted the penalty.