Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Aurangabad District Industrial and Urban Co-operative Bank Ltd., Aurangabad 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 directives on KYC/AML guidelines, did not introduce a Concurrent Audit System, submitted wrong/unsatisfactory/delayed compliance to the RBI Inspection Report, and had concentration of deposits. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Aurangabad