Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs. 5.00 lakh on Vyavasayik Evam Audyogik Sahakari Bank Ltd., 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 penalty was for violation of section 20 of the BR Act 1949 (AACS), RBI directives/instructions/guidelines on loan against WHRs and credit exposure ceiling, director-related loans, donations, KYC/AML requirements, and non-compliance with the RBI inspection report. The penalty was imposed after a show-cause notice was issued and the bank's written reply was examined.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Morena, Madhya Pradesh