Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on The Municipal Co-operative Bank Ltd., Ahmedabad under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was based on violations of RBI instructions relating to Know Your Customer (KYC) norms and unsecured advances, identified during inspection as on March 31, 2010. RBI considered the bank's reply to the show-cause notice and personal submissions, but concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat
- Order Date