Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Vyavasayik Evam Audyogik Sahakari Bank Maryadit, Morena (Madhya Pradesh), under Section 47A(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/instructions/guidelines on credit exposure ceiling, maximum limit on unsecured advances, Know Your Customer (KYC) / Anti Money Laundering (AML), and submission of compliance to RBI's inspection report. After issuing a show-cause notice and considering the bank's written reply, RBI concluded the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Morena, Madhya Pradesh