Case Brief
The Reserve Bank of India imposed a monetary penalty on The Banaskantha Mercantile Co-operative Bank Ltd., Palanpur, Dist. Banaskantha (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed an inspection related to the bank’s financial position as on March 31, 2014, which found violations of RBI directives/guidelines on Know Your Customer (KYC) and Anti Money Laundering (AML). RBI issued a show-cause notice, considered the bank’s written reply and personal submissions, and then imposed a penalty of ₹5 lakh.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Palanpur, Gujarat