Case Brief
The Reserve Bank of India penalised The Vijay Co-operative Bank Ltd., Ahmedabad 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 KYC norms and operational instructions by distributing dividend without obtaining prior approval from the central bank. After considering the bank's reply and personal submission, RBI concluded the contraventions were substantiated and imposed a monetary penalty of Rs 5 lakh.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat
- Order Date