Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Sher Nagrik Sahakari Bank Ltd., Jabalpur (Madhya Pradesh), under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found the bank had violated directives/instructions/guidelines relating to KYC/AML norms, charging of interest on loans and advances, and operational instructions issued under section 36(1) of the Act. After issuing a show-cause notice and considering the bank's reply and personal submissions, RBI concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Jabalpur, Madhya Pradesh