Case Brief
The Reserve Bank of India has imposed a monetary penalty of ₹5.00 lakh on The Kurmanchal Nagar Sahkari Bank Ltd., Nainital, Uttarakhand. The action was taken under Section 47-A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after RBI found violations of its directives/guidelines on loans and advances to directors, their relatives, and related concerns, as well as breaches of KYC/AML requirements. RBI had issued a show-cause notice, considered the bank’s written reply, and concluded that the violations were substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Nainital, Uttarakhand