RBI imposes Monetary Penalty on The Vardhman Co-operative Bank Ltd., Dist. Jamnagar (Gujarat)

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Vardhman Co-operative Bank Ltd., Dist. Jamnagar (Gujarat), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. The penalty was based on violations of RBI guidelines and instructions relating to KYC, failure to identify suspicious transactions and file STRs with FIU-India, and improper implementation of customer risk categorisation. RBI had issued a show-cause notice, considered the bank's written reply and personal submissions, and held that the violations were substantiated.