Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs. 5.00 lakh on Vasai Vikas Sahakari Bank Ltd., Thane, Maharashtra under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its directives by not following KYC norms while opening the current account of a director-related firm, granting unsecured advances to that firm, allowing cheque purchase beyond the permissible limit, allowing unsecured advances beyond the permissible limit, and allowing limits beyond the exposure ceiling. After issuing a show-cause notice and examining the bank's reply, RBI concluded that the violations were substantiated and penalised the bank.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Thane, Maharashtra