Case Brief
RBI imposed a monetary penalty on Shri Vinayak Sahakari Bank Ltd., Ahmedabad, Gujarat under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The bank was found to have violated RBI instructions on unsecured advances, KYC norms and AML guidelines, had a shortage in cash balances, opened benami accounts, and violated the Dos' and Don'ts prescribed for the board of directors. The bank had received a show-cause notice and submitted a written reply, but RBI concluded that the violations were substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat