Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Porbandar Vibhagiya Nagarik Sahakari Bank Ltd., Porbandar, Gujarat. RBI took this action under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after finding that the bank had violated its instructions on Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. The bank had received a show-cause notice and submitted a written reply, but RBI concluded that the contravention was substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Porbandar, Gujarat